The URL can be used to link to this page

AC 07.28.25 Agenda PacketCITY OF CUPERTINO AUDIT COMMITTEE AGENDA 10185 North Stelling Road, Quinlan Conference Room Monday, July 28, 2025 4:00 PM Regular Meeting Members of the public wishing to observe the meeting may do so in one of the following ways: 1) Attend in person at Quinlan Community Center, 10185 North Stelling Road 2) The meeting will also be streamed live on and online at https://youtube.com/@cupertinocitycommission Members of the public wishing to comment on an item on the agenda may do so in the following ways: 1) Appear in person at Quinlan Community Center. 2) E-mail comments by 4:00 p.m. on Monday, July 28 to the legislative body at Auditcommittee@cupertino.gov. These e-mail comments will also be posted to the City ’s website after the meeting. Oral public comments may be made during the public comment period for each agenda item. ROLL CALL ORDERS OF THE DAY APPROVAL OF MINUTES 1.Subject: Approve Minutes of Regular Meeting on April 28, 2025 Recommended Action: Approve Minutes of Regular Meeting on April 28, 2025 A - Draft Minutes 2.Subject: Approve Minutes of Special Meeting on May 12, 2025 Recommended Action: Approve Minutes of Special Meeting on May 12, 2025 A - Draft Minutes POSTPONEMENTS Page 1 1 Audit Committee Agenda July 28, 2025 ORAL COMMUNICATIONS This portion of the meeting is reserved for persons wishing to address the Committee on any matter within the jurisdiction of the Committee and not on the agenda. Speakers are limited to three (3) minutes. In most cases, State law will prohibit the Commission from making any decisions with respect to a matter not on the agenda. OLD BUSINESS NEW BUSINESS 3.Subject: INFORMATIONAL ITEM Fiscal Year 2024-25 ACFR Interim Testing Update Recommended Action: Receive the Fiscal Year 2024-25 ACFR Interim Testing Update Presenter: The Pun Group 4:15(10) 4.Subject: INFORMATIONAL ITEM Receive OPEB & Pension Section 115 Trust Performance Report for Quarter Ending June 30, 2025 Recommended Action: Receive OPEB & Pension Section 115 Trust Performance Report for Quarter Ending June 30, 2025 Presenter: PARS and US Bank 4:25(10) A - OPEB Pension Section 115 Trust Performance Report for Quarter Ending June 30 2025 5.Subject: INFORMATIONAL ITEM Receive the Treasurer's Investment Report for the Quarter Ending June 30, 2025 Recommended Action: Receive the Treasurer's Investment Report for the Quarter Ending June 30, 2025 Presenter: Jonathan Orozco, Finance Manager, and Chandler 4:35(15) Staff Report A – Chandler Investment Report June 2025 B – Chandler Custodial Statement June 2025 C – PARS Pension and OPEB Account Statement June 2025 D – LAIF Account Statement June 2025 6.Subject: INFORMATIONAL ITEM Receive the Internal Audit and Fraud, Waste, and Abuse programs update Recommended Action: Receive the Internal Audit and Fraud, Waste, and Abuse programs update Presenter: Baker Tilly 4:50(10) A - Internal Audit Status Report 07-21-25 B - Audit Validation Report - July 2025 Page 2 2 Audit Committee Agenda July 28, 2025 7.Subject: ACTION ITEM Discuss Audit Committee Duties, Powers, and Responsibilities Provide recommendation (if any) to City Council for an Audit Committee municipal code Government Code Section 2.88.100 update Presenter: Jonathan Orozco, Finance Manager 5:00(25) Staff Report A – Audit Committee Work Plan and duties and responsibilities 2025 B - Chapter 2.88 Audit Committee 8.Subject: ACTION ITEM Special Revenue Fund Process Audit Update Receive Special Revenue Fund Process Audit Update and forward to City Council Presenter: Baker Tilly 5:25(15) A - Special Revenue Fund Process Review FINAL 7-10-25 B - Special Revenue Funds Process Review Powerpoint 9.Subject: ACTION ITEM Budget Format Review Presentation and Formation of Budget Format Review Subcommittee Recommended Action: 1. Receive Budget Format Review presentation as outlined in the Budget Format Implementation Action Plan (IAP) recommendation #30 2. Form Budget Format Review subcommittee Presenter: Kristina Alfaro, Director of Administrative Services 5:40(15) Staff report A - Budget Format Implementation Action Plan B – Opengov Budget Examples Presentation 10.Subject: INFORMATIONAL ITEM Receive the proposed Audit Committee 2025 Schedule and Workplan Receive the proposed Audit Committee 2025 Schedule and Workplan Presenter: Jonathan Orozco, Finance Manager 5:55(5) A - Proposed Audit Committee 2025 Schedule and Work Plan STAFF AND COMMITTEE REPORTS COMMITTEEMEMBER ATTENDANCE AT UPCOMING MEETINGS AND EVENTS FUTURE AGENDA SETTING Page 3 3 Audit Committee Agenda July 28, 2025 ADJOURNMENT In compliance with the Americans with Disabilities Act (ADA), anyone who is planning to attend this meeting who is visually or hearing impaired or has any disability that needs special assistance should call the City Clerk's Office at 408-777-3223, at least 48 hours in advance of the meeting to arrange for assistance. In addition, upon request in advance by a person with a disability, meeting agendas and writings distributed for the meeting that are public records will be made available in the appropriate alternative format. Any writings or documents provided to a majority of the members after publication of the agenda will be made available for public inspection. Please contact the City Clerk’s Office in City Hall located at 10300 Torre Avenue, Cupertino, California 95014, during normal business hours. IMPORTANT NOTICE: Please be advised that pursuant to Cupertino Municipal Code section 2.08.100 written communications sent to the City Council, Commissioners or staff concerning a matter on the agenda are included as supplemental material to the agendized item. These written communications are accessible to the public through the City website and kept in packet archives. Do not include any personal or private information in written communications to the City that you do not wish to make public, as written communications are considered public records and will be made publicly available on the City website. Page 4 4 CITY OF CUPERTINO Agenda Item 25-14184 Agenda Date: 7/28/2025 Agenda #: 1. Subject: Approve Minutes of Regular Meeting on April 28, 2025 Approve Minutes of Regular Meeting on April 28, 2025 CITY OF CUPERTINO Printed on 7/24/2025Page 1 of 1 powered by Legistar™5 Page 1 City of Cupertino Audit Committee Regular Meeting DRAFT Minutes April 28, 2025 CALL TO ORDER At 4:00 p.m., Chair Eno Schmidt called the special meeting to order in the City of Cupertino Quinlan Conference Room, 10185 North Stelling Road. ROLL CALL Committee Members Present: Chair Eno Schmidt, Vice Chair Hanyan Wu , Vice Mayor Kitty Moore, Councilmember Sheila Mohan City Staff Present: Janet Liang, Jonathan Orozco, Kristina Alfaro, Richard Wong Absent: Guests: Jennifer Meza (PARS), Dennis Mullins (BPFM), Chelsea Ritchie (Moss Adams), Maria Stroth (Moss Adams), Colleen Rozillis (Moss Adams), Carlos Oblites (Chandler), Sophia Kuo (The Pun Group) ORDERS OF THE DAY 1. Subject: Approve Minutes of Special Meeting on February 28, 2025 Recommended Action: Approve Minutes of Special Meeting on February 28, 2025 MOTION: Vice Mayor Moore motioned to approve the minutes, Councilmember Mohan seconded. The motion passed unanimously. POSTPONEMENTS ORAL COMMUNICATIONS OLD BUSINESS NEW BUSINESS 2. Subject: ACTION ITEM Appoint Audit Committee Chair and Vice Chair Recommended Action: Appoint Audit Committee Chair and Vice Chair Toler provided an overview. No public comment. 6 Page 2 MOTION: Councilmember Mohan motioned to nominate Chair Schmidt as chair again,Vice Mayor Moore seconded. Chair Schmidt nominated Committee member Hanyan as Vice Chair. An amendment was made to the motion to nominate Committee member Hanyan Wu as Vice Chair. The motion passed unanimously. 3. Subject: INFORMATIONAL ITEM Receive OPEB & Pension Section 115 Trust Performance Report for Quarter Ending March 31, 2025 Recommended Action: Receive OPEB & Pension Section 115 Trust Performance Report for Quarter Ending March 31, 2025 Dennis Mullins provided a presentation and overview. Committee members asked questions and made comments. No public comment. Audit Committee received the report. 4. Subject: INFORMATIONAL ITEM Receive the Internal Audit and Fraud, Waste, and Abuse programs update Recommended Action: Receive the Internal Audit and Fraud, Waste, and Abuse programs update Chelsea Ritchie and Colleen Adams provided a presentation and overview. Committee members asked questions and made comments. No public comment. Audit Committee received the report. 5. Subject: ACTION ITEM Internal Audit Work Program Review Recommended Action: Receive the Internal Audit Work Program and forward to City Council for approval Maria Stroth provided a presentation and overview. Committee members asked questions and made comments. No public comment. MOTION: Vice Mayor Moore motioned to receive the report and forward to City Council for approval, Committee member Wu seconded. The motion passed unanimously. 7 Page 3 6. Subject: ACTION ITEM Annual Review of the City’s Investment Policy Recommended Action: Annual Review of the City’s Investment Policy and forward to City Council for Adoption Jonathan Orozco provided an overview. Committee members asked questions and made comments. No public comment. Chair Schmidt requested staff update the policy to spell out that there is an OPEB policy and a Pension Trust policy to provide more clarity and update the date of when the policy was approved by City Council on December 3, 2025. MOTION: Vice Mayor Moore motioned to receive the report and forward to City Council for Adoption, Councilmember Mohan seconded. The motion passed unanimously. 7. Subject: INFORMATIONAL ITEM Receive the Single Audit and Agreed Upon Procedures (AUP) Reviews - GANN Limit, Investment Policy, Storm Drain Recommended Action: Receive the Single Audit and Agreed Upon Procedures (AUP) Reviews - GANN Limit, Investment Policy, Storm Drain Jonathan Orozco and Sophia Kuo provided an overview. Committee members asked questions and made comments. No public comment. Audit Committee received the report. 8. Subject: ACTION ITEM Updated Budget Format Implementation Action Plan (IAP) Recommended Action: Receive the Updated Budget Format Implementation Action Plan (IAP) and forward to City Council for approval. Kristina Alfaro provided an overview. Committee members asked questions and made comments. No public comment. MOTION: Councilmember Mohan motioned to receive the Updated Budget Format Implementation Action Plan (IAP) and forward to City Council for approval Committee member Wu seconded. The motion passed unanimously. 8 Page 4 9. Subject: INFORMATIONAL ITEM Receive the proposed Audit Committee 2025 Schedule and Workplan Recommended Action: Receive the proposed Audit Committee 2025 Schedule and Workplan Jonathan Orozco provided an overview. Committee members asked questions and made comments. No public comment. Audit Committee received the report. STAFF AND COMMITTEE REPORTS COMMITTEE MEMBER ATTENDANCE AT UPCOMING MEETINGS AND EVENTS FUTURE AGENDA SETTING ADJOURNMENT The meeting adjourned at 6:16 p.m. Recording Secretary: Janet Liang, Senior Management Analyst 9 CITY OF CUPERTINO Agenda Item 25-14185 Agenda Date: 7/28/2025 Agenda #: 2. Subject: Approve Minutes of Special Meeting on May 12, 2025 Approve Minutes of Special Meeting on May 12, 2025 CITY OF CUPERTINO Printed on 7/24/2025Page 1 of 1 powered by Legistar™10 Page 1 City of Cupertino Audit Committee Special Meeting DRAFT Minutes May 12, 2025 CALL TO ORDER At 3:03 p.m., Chair Eno Schmidt called the special meeting to order in the City of Cupertino Quinlan Conference Room, 10185 North Stelling Road. ROLL CALL Committee Members Present: Chair Eno Schmidt, Vice Mayor Kitty Moore, Councilmember Sheila Mohan City Staff Present: Janet Liang, Jonathan Orozco, Kristina Alfaro Absent: Vice Chair Hanyan Wu Guests: Carlos Oblites (Chandler) ORDERS OF THE DAY POSTPONEMENTS ORAL COMMUNICATIONS OLD BUSINESS NEW BUSINESS 1. Subject: INFORMATIONAL ITEM Receive the Treasurer's Investment Report for the Quarter Ending March 31, 2025 Recommended Action: Receive the Treasurer's Investment Report for the Quarter Ending March 31, 2025 Mullins provided an overview. Committee members asked questions and made comments. Audit Committee received the report. STAFF AND COMMITTEE REPORTS COMMITTEE MEMBER ATTENDANCE AT UPCOMING MEETINGS AND EVENTS FUTURE AGENDA SETTING ADJOURNMENT 11 Page 2 The meeting adjourned at 3:47 p.m. Recording Secretary: Janet Liang, Senior Management Analyst 12 CITY OF CUPERTINO Agenda Item 25-14187 Agenda Date: 7/28/2025 Agenda #: 3. Subject: INFORMATIONAL ITEM Fiscal Year 2024-25 ACFR Interim Testing Update Receive the Fiscal Year 2024-25 ACFR Interim Testing Update Presenter: The Pun Group 4:15(10) CITY OF CUPERTINO Printed on 7/24/2025Page 1 of 1 powered by Legistar™13 CITY OF CUPERTINO Agenda Item 25-14188 Agenda Date: 7/28/2025 Agenda #: 4. Subject:INFORMATIONAL ITEM Receive OPEB & Pension Section 115 Trust Performance Report for Quarter Ending June 30, 2025 Receive OPEB & Pension Section 115 Trust Performance Report for Quarter Ending June 30, 2025 Presenter: PARS and US Bank 4:25(10) CITY OF CUPERTINO Printed on 7/24/2025Page 1 of 1 powered by Legistar™14 City of Cupertino PARS 115 Trust – OPEB Prefunding Program & Pension Rate Stabilization Program Plan Client Review July 28, 2025 15 City of Cupertino ▎ 2 Pars 115 Trust Team Trust Administrator & Consultant* 41 Years of Experience (1984-2025) 2,000+ Plans under Administration 1,000+ Public Agency Clients $9.2 B+ Assets under Administration Investment Manager •A division of U.S. Bancorp Asset Management, Inc. •Fixed income and multi asset portfolios •Active and passive platform options •Customized portfolios (with minimum asset level) 40+ Years of Investment Experience (As of 12/31/2024) $256.5 B+ * Assets under Management & Advisement Trustee •5th largest commercial bank and one of the nation’s largest trustees for Section 115 trusts •Safeguard plan assets •Oversight protection as plan fiduciary •Custodian of assets 162 Years of Experience (1863-2025) $11.0 T Assets under Administration 500+ 115 Trust Clients •Serves as record-keeper, consultant, and central point of contact •Sub-trust accounting •Coordinates all agency services •Monitors plan compliance (IRS/GASB/State Government Code) •Processes contributions/disbursements •Hands-on, dedicated support teams 500 K+ Plan Participants *Please see disclosures at the end of this presentation As of March 31, 2025 * See important information regarding PARS in the Disclaimer page at the end of the presentation. 16 City of Cupertino ▎ 3 Subaccounts OPEB and pension assets are individually sub-accounted, and can be divided by dept., bargaining group, or cost center. Assets in the PARS Section 115 Combination Trust can be used to address unfunded liabilities. Financial Stability Allows separate investment strategies for OPEB and pension subaccounts. Flexible Investing OPEB and pension assets aggregate and reach lower fees on tiered schedule sooner – saving money! Economies-of-ScaleAnytime Access Trust funds are available anytime; OPEB for OPEB and pension for pension. No set-up costs, no minimum annual contribution amounts, and no fees until assets are added. No Set Up Cost or Minimums Retiree Medical Benefits Prefund OPEB GASB 75 OPEB Reimburse agency; or Pay benefits provider Pension Rate Stabilization Program Prefund Pension (PRSP)GASB 68 Pension Reimburse agency; or Pay retirement system Assets can be used to:Assets can be used to: prefund either or both General Fund PARS IRS -Approved Section 115 Trust 17 Client CONFIDENTIAL Client CONFIDENTIAL Investment and insurance products and services including annuities are: NOT A DEPOSIT ●NOT FDIC INSURED ●MAY LOSE VALUE ●NOT BANK GUARANTEED ●NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY PARS/CITY OF CUPERTINO 115P OPEB & PENSION ACCOUNTS June 30, 2025 Review 18 Client CONFIDENTIAL Your Team Sub-advised investment services are provided by PFM Asset Management (“PFMAM”). PFM Asset Management serves clients in the public sector and is a division of U.S. Bancorp Asset Management, Inc., which is the legal entity providing investment advisory services. U.S. Bancorp Asset Management, Inc. is a registered investment adviser, a direct subsidiary of U.S. Bank N.A. and an indirect subsidiary of U.S. Bancorp. U.S. Bank N.A. is not responsible for and does not guarantee the products, services, or performance of U.S. Bancorp Asset Management, Inc. For more information regarding PFMAM’s services please visit www.pfmam.com. Dennis Mullins Vice President & Senior Institutional Client Portfolio Manager PFM Asset Management 513.304.0398 Dennis.Mullins@usbank.com Ryan Maxey Vice President & Relationship Manager U.S. Bank Institutional Trust & Custody 503.464.3789 Ryan.Maxey@usbank.com Jennifer Meza, CEBS Manager, Consulting PARS (Public Agency Retirement Services) 800.540.6369 Ext. 141 (office) 949.375.8239 (cell) www.pars.org Mitch Barker Executive Vice President PARS (Public Agency Retirement Services) 949.310.4876 (cell) www.pars.org City of Cupertino ▎ 519 Client CONFIDENTIAL Table of Contents Page 4 –PORTFOLIO REVIEW PARS/CITY OF CUPERTINO 115P - OPEB (X9600) •Portfolio Overview •Equity Analysis •Fixed Income Analysis •Performance (AGG460596) •Holdings PARS/CITY OF CUPERTINO 115P – PENSION (X9601) •Portfolio Overview •Equity Analysis •Fixed Income Analysis •Performance •Holdings Page 20 – INVESTMENT POLICIES Page 33 – MARKET REVIEW Page 36 –DISCLOSURES, DEFINITIONS, DESCRIPTIONS City of Cupertino ▎ 620 Client CONFIDENTIAL Portfolio Review - OPEB Provided by U.S Bank 21 PARS/CITY OF CUPERTINO 115P - OPEB Portfolio Overview Account: XXXXXX9600 Holdings Method: Direct Report Date: 06/30/2025 © 2025 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results. Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed. Holdings Date: 6/30/2025 Portfolio Summary Inv. Objective Balanced/Nontaxable-1 Total Portfolio Value $42,689,285 Net Realized Cap Gains YTD $5,844,596 Annual Income Projected $1,033,501 Current Yield 2.42% Number of Securities 8 Portfolio Mgr.Dennis S. Mullins, CFA Portfolio Asset Allocation Equity $27,686,935 64.86% Fixed Income $12,025,680 28.17% Real Assets $2,014,724 4.72% Cash $961,947 2.25% Invested Total $42,689,285 100.00% 65% 28% 5% 2% Equity Fixed Income Real Assets Cash Portfolio Model Allocation Investment Grade High Yield Large Cap U.S. Equity Small Cap U.S. Equity Developed Markets Equity Emerging Markets Equity U.S. Listed Real Estate Cash Equivalents 0% 10% 20% 30% 40% 50% Portfolio City of Cupertino ▎ 822 PARS/CITY OF CUPERTINO 115P - OPEB Fixed Income Overview Account: XXXXXX9600 Holdings Method: Direct Report Date: 06/30/2025 © 2025 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results. Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed. Holdings Date: 6/30/2025 Fixed Income Summary Inv. Objective Balanced/Nontaxable-1 Total Fixed Income Value $12,025,680 Current Yield 4.05% Annual Income Projected $487,024 Number of Securities 2 Portfolio Mgr.Dennis S. Mullins, CFA Fixed Income Asset Allocation Investment Grade $9,988,156 83.06% High Yield $2,037,524 16.94% 83% 17% Investment Grade High Yield Fixed Income Sector Exposures Mutual Funds & ETFs $12,025,680 100.00%100% Mutual Funds & ETFs Fixed Income Market Value 12/3 1 / 2 0 2 1 12/3 0 / 2 0 2 2 12/2 9 / 2 0 2 3 12/3 1 / 2 0 2 4 Prev i o u s C l o s e 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 City of Cupertino ▎ 923 PARS/CITY OF CUPERTINO 115P - OPEB Equity Overview Account: XXXXXX9600 Holdings Method: Direct and Indirect (securities held in mutual funds & ETFs)Report Date: 06/30/2025 © 2025 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results. Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed. Holdings Date: 6/30/2025 Equity Summary Inv. Objective Balanced/Nontaxable-1 Total Equity Value $27,686,935 Current Yield 1.60% Annual Income Projected $443,977 Number of Securities 4 Portfolio Mgr.Dennis S. Mullins, CFA Equity Asset Allocation Large Cap U.S. $17,532,678 63.32% Developed Mkts $6,820,516 24.63% Emerging Mkts $2,401,265 8.67% Small Cap U.S. $932,476 3.37% 63% 25% 9% 3% Large Cap U.S.Developed Mkts Emerging Mkts Small Cap U.S. Bottom 5/ Top 5 Contributors (Trailing 12 Months) IWBFSPSXFPADXFSMDXJVLIXHNACXFSSNX 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% Equity Global Distribution North America Europe Asia Middle East South America Africa 70.10% 14.98% 13.66% 0.66% 0.35% 0.24% Equity Country Distribution United States Japan United Kingdom France Hong Kong 69.86% 4.93% 3.33% 2.43% 2.39% City of Cupertino ▎ 1024 PARS/CITY OF CUPERTINO 115P - OPEB Common Stock Detail Comparison Account: XXXXXX9600 Holdings Method: Direct and Indirect (securities held in mutual funds & ETFs)Report Date: 06/30/2025 © 2025 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results. Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed. Holdings Date: 6/30/2025 Top 10 Common Stock Holdings Stock Wt. (%) Full Port Wt. (%)Yield (%) YTD Return* (%) 52 Wk Return* (%) NVIDIA Corporation 3.96 2.65 0.03 17.7 27.9 Microsoft Corporation 3.95 2.64 0.67 18.5 12.1 Apple Inc.3.24 2.17 0.49 -17.9 -2.1 Amazon.com, Inc.2.25 1.51 0.00 0.0 13.5 Meta Platforms Inc Class A 1.73 1.15 0.29 26.3 46.9 Broadcom Inc.1.36 0.91 0.86 19.5 73.6 Alphabet Inc. Class A 1.10 0.73 0.45 -6.7 -2.8 Berkshire Hathaway Inc. Class …0.96 0.64 0.00 7.2 19.4 Tesla, Inc.0.96 0.64 0.00 -21.3 60.5 Alphabet Inc. Class C 0.90 0.60 0.45 -6.6 -2.8 Common Stock Characteristics Portfolio ACWI Market Cap - Wtd Avg $659.0B $750.9B Market Cap - Median $6.2B $18.0B Dividend Yield 1.89 1.75 P/E NTM 18.8 18.4 P/E LTM 21.5 21.5 ROE (%)20.5 22.2 1 Yr Beta vs. S&P Composite .84 .84 Est 3-5 Yr EPS Growth (%)10.8 11.1 Hist 3 Yr EPS Growth (%)16.6 18.0 Number of Securities 4829 2234 Common Stock Sector Exposures 5% 10% 15% 20% 25% 30% Communication Services Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Real Estate Utilities Portfolio ACWI Portfolio ACWI 7.87 8.69 9.91 10.49 5.37 5.83 2.97 3.51 15.87 17.00 8.99 9.08 10.95 10.91 23.47 26.57 2.97 3.36 9.18 1.98 2.43 2.60 Common Stock Market Cap Distribution > 50B 10B to 50B 2B to 10B 250MM to 2B < 250MM 0% 10% 20% 30% 40% 50% 60% 70% 80%Portfolio ACWI *Specific to the security - does not represent performance in the portfolio. City of Cupertino ▎ 1125 Client CONFIDENTIAL Custom Benchmark ActualTargetRangeBenchmarkAsset Class 64.9%63%50%-70%MSCI ACWI Index (net)Equities 28.2%29%20%-40%BBARC Global Aggregate IndexFixed Income 4.7%5%0%-15%S&P Global REIT TR USDReal Estate 0%2%0%-10%S&P GSCI Commodity IndexCommodities 2.2%1%0%-10%FTSE 3-Mo US T-Bill IndexCash CITY OF CUPERTINO OPEB City of Cupertino ▎ 1226 Selected Period Performance Period Ending: 06/30/2025PARS/CITY OF CUPERTINO 115P - OPEB (****059600) Year Inception to Date to Date Market Value (6 Months) 3 Months 1 Year 3 Years 5 Years 03/01/2019 Total Portfolio Gross of Fees 42,734,042 7.73 8.21 12.80 12.59 8.93 7.68 Total Portfolio Net of Fees 42,734,042 7.64 8.17 12.61 12.40 8.74 7.49 City of Cupertino 8.83 8.67 13.47 11.98 9.01 8.12 Total Equity 27,686,935 9.91 12.02 15.76 17.35 12.90 11.61 MSCI ACWI (Net)10.05 11.53 16.17 17.35 13.65 11.84 Russell 3000 Index 5.75 10.99 15.30 19.08 15.96 14.51 S&P 500 Index (Total Return)6.20 10.94 15.16 19.71 16.64 15.33 S&P MidCap 400 Index .20 6.71 7.53 12.83 13.44 9.69 S&P SmallCap 600 Index -4.46 4.90 4.60 7.65 11.68 6.81 MSCI EAFE Index (Net)19.45 11.78 17.73 15.97 11.16 8.54 MSCI Emerging Markets Index (Net)15.27 11.99 15.29 9.70 6.81 5.00 Total Fixed Income 12,067,206 4.16 1.65 6.82 3.87 .72 .84 BBARC US Aggregate Bond Index 4.02 1.21 6.08 2.55 -.73 1.54 BBARC Global Aggregate Index 7.27 4.52 8.91 2.75 -1.16 .44 Total Real Assets 2,014,724 .03 -.95 8.95 5.41 7.50 4.82 S&P Global REIT Index (Gross)4.76 3.06 11.18 5.06 7.31 3.80 S&P GSCI Index 1.94 -2.81 .25 -.37 17.69 6.55 Total Cash Equivalents 965,177 2.12 1.06 4.66 4.55 2.74 2.46 FTSE 3 Month Treasury Bill Index 2.21 1.09 4.88 4.75 2.88 2.65 Pending Cash 0 .00 .00 .00 .00 .00 .00 ▎ 1327 PARS/CITY OF CUPERTINO 115P - OPEB Portfolio Holdings Account: XXXXXX9600 Holdings Method: Direct Report Date: 06/30/2025 © 2025 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results. Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed. Holdings Date: 6/30/2025 Symbol % of Port.Price Shares/ Units Portfolio Value Cost Basis Unrealized Gain/Loss Current Yield Projected Annual Income Total 100.0 42,689,285 38,955,613 3,733,673 2.42 1,033,501 Cash 2.25 961,947 961,947 0 4.26 40,983 Cash Equivalents 2.25 961,947 961,947 0 4.26 40,983 FIRST AM GOVT OB FD CL X 31846V336 2.25 1.00 961,947 961,947 961,947 0 4.26 40,983 Fixed Income 28.17 12,025,680 11,897,311 128,369 4.05 487,024 Investment Grade 23.40 9,988,156 9,788,246 199,910 3.45 344,419 Mutual Funds & ETFs 23.40 9,988,156 9,788,246 199,910 3.45 344,419 Fidelity U.S. Bond Index Fund FXNAX 23.40 10.44 956,720 9,988,156 9,788,246 199,910 3.45 344,419 High Yield 4.77 2,037,524 2,109,065 -71,541 7.00 142,605 Mutual Funds & ETFs 4.77 2,037,524 2,109,065 -71,541 7.00 142,605 Artisan High Income Fund - Institutional Sh…APHFX 4.77 9.23 220,750 2,037,524 2,109,065 -71,541 7.00 142,605 Equity 64.86 27,686,935 24,059,068 3,627,867 1.60 443,977 Large Cap U.S. Equity 41.07 17,532,678 15,560,589 1,972,089 1.10 193,207 Mutual Funds & ETFs 41.07 17,532,678 15,560,589 1,972,089 1.10 193,207 iShares Russell 1000 ETF IWB 41.07 339.57 51,632 17,532,678 15,560,589 1,972,089 1.10 193,207 Small Cap U.S. Equity 2.18 932,476 836,017 96,458 1.04 9,736 Mutual Funds & ETFs 2.18 932,476 836,017 96,458 1.04 9,736 Fidelity Small Cap Index Fund FSSNX 2.18 27.20 34,282 932,476 836,017 96,458 1.04 9,736 Developed Markets Equity 15.98 6,820,516 5,707,045 1,113,471 2.71 185,116 Mutual Funds & ETFs 15.98 6,820,516 5,707,045 1,113,471 2.71 185,116 Fidelity International Index Fund FSPSX 15.98 57.33 118,969 6,820,516 5,707,045 1,113,471 2.71 185,116 Emerging Markets Equity 5.62 2,401,265 1,955,417 445,848 2.33 55,917 Mutual Funds & ETFs 5.62 2,401,265 1,955,417 445,848 2.33 55,917 Fidelity Emerging Markets Index Fund FPADX 5.62 12.11 198,288 2,401,265 1,955,417 445,848 2.33 55,917 Real Assets 4.72 2,014,724 2,037,287 -22,563 3.05 61,517 U.S. Listed Real Estate 4.72 2,014,724 2,037,287 -22,563 3.05 61,517 iShares Core U.S. REIT ETF USRT 4.72 56.56 35,621 2,014,724 2,037,287 -22,563 3.05 61,517 City of Cupertino ▎ 1428 Client CONFIDENTIAL Portfolio Review - Pension Provided by U.S Bank 29 PARS/CITY OF CUPERTINO 115P- PENSION Portfolio Overview Account: XXXXXX9601 Holdings Method: Direct Report Date: 06/30/2025 © 2025 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results. Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed. Holdings Date: 6/30/2025 Portfolio Summary Inv. Objective Balanced/Nontaxable-1 Total Portfolio Value $24,296,317 Net Realized Cap Gains YTD $2,490,860 Annual Income Projected $581,587 Current Yield 2.39% Number of Securities 8 Portfolio Mgr.Dennis S. Mullins, CFA Portfolio Asset Allocation Equity $16,039,389 66.02% Fixed Income $6,576,020 27.07% Real Assets $1,146,415 4.72% Cash $534,493 2.20% Invested Total $24,296,317 100.00% 66% 27% 5% 2% Equity Fixed Income Real Assets Cash Portfolio Model Allocation Investment Grade High Yield Large Cap U.S. Equity Small Cap U.S. Equity Developed Markets Equity Emerging Markets Equity U.S. Listed Real Estate Cash Equivalents 0% 10% 20% 30% 40% 50% Portfolio City of Cupertino ▎ 1630 PARS/CITY OF CUPERTINO 115P- PENSION Fixed Income Overview Account: XXXXXX9601 Holdings Method: Direct Report Date: 06/30/2025 © 2025 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results. Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed. Holdings Date: 6/30/2025 Fixed Income Summary Inv. Objective Balanced/Nontaxable-1 Total Fixed Income Value $6,576,020 Current Yield 4.06% Annual Income Projected $266,868 Number of Securities 2 Portfolio Mgr.Dennis S. Mullins, CFA Fixed Income Asset Allocation Investment Grade $5,446,398 82.82% High Yield $1,129,621 17.18% 83% 17% Investment Grade High Yield Fixed Income Sector Exposures Mutual Funds & ETFs $6,576,020 100.00%100% Mutual Funds & ETFs Fixed Income Market Value 12/3 1 / 2 0 2 1 12/3 0 / 2 0 2 2 12/2 9 / 2 0 2 3 12/3 1 / 2 0 2 4 Prev i o u s C l o s e 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 City of Cupertino ▎ 1731 PARS/CITY OF CUPERTINO 115P- PENSION Equity Overview Account: XXXXXX9601 Holdings Method: Direct and Indirect (securities held in mutual funds & ETFs)Report Date: 06/30/2025 © 2025 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results. Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed. Holdings Date: 6/30/2025 Equity Summary Inv. Objective Balanced/Nontaxable-1 Total Equity Value $16,039,389 Current Yield 1.60% Annual Income Projected $256,942 Number of Securities 4 Portfolio Mgr.Dennis S. Mullins, CFA Equity Asset Allocation Large Cap U.S. $10,163,330 63.36% Developed Mkts $3,872,392 24.14% Emerging Mkts $1,473,099 9.18% Small Cap U.S. $530,568 3.31% 63% 24% 9% 3% Large Cap U.S.Developed Mkts Emerging Mkts Small Cap U.S. Bottom 5/ Top 5 Contributors (Trailing 12 Months) IWBFSPSXFPADXFSMDXJVLIXHNACXFSSNX 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% Equity Global Distribution North America Europe Asia Middle East South America Africa 70.05% 14.73% 13.90% 0.69% 0.37% 0.25% Equity Country Distribution United States Japan United Kingdom Hong Kong France 69.81% 4.84% 3.27% 2.50% 2.38% City of Cupertino ▎ 1832 PARS/CITY OF CUPERTINO 115P- PENSION Common Stock Detail Comparison Account: XXXXXX9601 Holdings Method: Direct and Indirect (securities held in mutual funds & ETFs)Report Date: 06/30/2025 © 2025 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results. Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed. Holdings Date: 6/30/2025 Top 10 Common Stock Holdings Stock Wt. (%) Full Port Wt. (%)Yield (%) YTD Return* (%) 52 Wk Return* (%) NVIDIA Corporation 3.97 2.70 0.03 17.7 27.9 Microsoft Corporation 3.96 2.69 0.67 18.5 12.1 Apple Inc.3.25 2.21 0.49 -17.9 -2.1 Amazon.com, Inc.2.26 1.54 0.00 0.0 13.5 Meta Platforms Inc Class A 1.73 1.18 0.29 26.3 46.9 Broadcom Inc.1.37 0.93 0.86 19.5 73.6 Alphabet Inc. Class A 1.10 0.75 0.45 -6.7 -2.8 Berkshire Hathaway Inc. Class …0.96 0.65 0.00 7.2 19.4 Tesla, Inc.0.96 0.65 0.00 -21.3 60.5 Alphabet Inc. Class C 0.90 0.61 0.45 -6.6 -2.8 Common Stock Characteristics Portfolio ACWI Market Cap - Wtd Avg $660.6B $750.9B Market Cap - Median $6.2B $18.0B Dividend Yield 1.89 1.75 P/E NTM 18.8 18.4 P/E LTM 21.5 21.5 ROE (%)20.6 22.2 1 Yr Beta vs. S&P Composite .84 .84 Est 3-5 Yr EPS Growth (%)10.8 11.1 Hist 3 Yr EPS Growth (%)16.6 18.0 Number of Securities 4829 2234 Common Stock Sector Exposures 5% 10% 15% 20% 25% 30% Communication Services Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Real Estate Utilities Portfolio ACWI Portfolio ACWI 7.91 8.69 9.94 10.49 5.36 5.83 2.97 3.51 15.86 17.00 8.97 9.08 10.91 10.91 23.60 26.57 2.97 3.36 9.07 1.98 2.43 2.60 Common Stock Market Cap Distribution > 50B 10B to 50B 2B to 10B 250MM to 2B < 250MM 0% 10% 20% 30% 40% 50% 60% 70% 80%Portfolio ACWI *Specific to the security - does not represent performance in the portfolio. City of Cupertino ▎ 1933 Client CONFIDENTIAL Custom Benchmark ActualTargetRangeBenchmarkAsset Class 66.0%63%50%-70%MSCI ACWI Index (net)Equities 27.1%29%20%-40%BBARC Global Aggregate IndexFixed Income 4.7%5%0%-15%S&P Global REIT TR USDReal Estate 0%2%0%-10%S&P GSCI Commodity IndexCommodities 2.2%1%0%-10%FTSE 3-Mo US T-Bill IndexCash CITY OF CUPERTINO PENSION City of Cupertino ▎ 2034 Selected Period Performance Period Ending: 06/30/2025PARS/CITY OF CUPERTINO 115P- PENSION (****059601) Year Inception to Date to Date Market Value (6 Months) 3 Months 1 Year 3 Years 5 Years 05/01/2019 Total Portfolio Gross of Fees 24,320,860 7.73 8.19 12.64 12.53 8.86 8.03 Total Portfolio Net of Fees 24,320,860 7.64 8.15 12.46 12.33 8.67 7.84 City of Cupertino 8.83 8.67 13.47 11.98 9.01 7.74 Total Equity 16,039,389 9.91 12.00 15.68 17.33 12.88 11.36 MSCI ACWI (Net)10.05 11.53 16.17 17.35 13.65 11.35 Russell 3000 Index 5.75 10.99 15.30 19.08 15.96 13.94 S&P 500 Index (Total Return)6.20 10.94 15.16 19.71 16.64 14.68 S&P MidCap 400 Index .20 6.71 7.53 12.83 13.44 9.36 S&P SmallCap 600 Index -4.46 4.90 4.60 7.65 11.68 6.93 MSCI EAFE Index (Net)19.45 11.78 17.73 15.97 11.16 8.18 MSCI Emerging Markets Index (Net)15.27 11.99 15.29 9.70 6.81 4.64 Total Fixed Income 6,598,771 4.17 1.64 6.83 3.87 .71 .68 BBARC US Aggregate Bond Index 4.02 1.21 6.08 2.55 -.73 1.26 BBARC Global Aggregate Index 7.27 4.52 8.91 2.75 -1.16 .30 Total Real Assets 1,146,415 -.03 -.97 8.90 5.43 7.53 4.65 S&P Global REIT Index (Gross)4.76 3.06 11.18 5.06 7.31 3.46 S&P GSCI Index 1.94 -2.81 .25 -.37 17.69 5.98 Total Cash Equivalents 536,286 2.12 1.05 4.66 4.52 2.71 2.46 FTSE 3 Month Treasury Bill Index 2.21 1.09 4.88 4.75 2.88 2.65 Pending Cash 0 .00 .00 .00 .00 .00 .00 ▎ 2135 PARS/CITY OF CUPERTINO 115P- PENSION Portfolio Holdings Account: XXXXXX9601 Holdings Method: Direct Report Date: 06/30/2025 © 2025 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results. Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed. Holdings Date: 6/30/2025 Symbol % of Port.Price Shares/ Units Portfolio Value Cost Basis Unrealized Gain/Loss Current Yield Projected Annual Income Total 100.0 24,296,317 22,189,935 2,106,382 2.39 581,587 Cash 2.20 534,493 534,493 0 4.26 22,772 Cash Equivalents 2.20 534,493 534,493 0 4.26 22,772 FIRST AM GOVT OB FD CL X 31846V336 2.20 1.00 534,493 534,493 534,493 0 4.26 22,772 Fixed Income 27.07 6,576,020 6,664,104 -88,084 4.06 266,868 Investment Grade 22.42 5,446,398 5,498,223 -51,824 3.45 187,807 Mutual Funds & ETFs 22.42 5,446,398 5,498,223 -51,824 3.45 187,807 Fidelity U.S. Bond Index Fund FXNAX 22.42 10.44 521,686 5,446,398 5,498,223 -51,824 3.45 187,807 High Yield 4.65 1,129,621 1,165,881 -36,259 7.00 79,061 Mutual Funds & ETFs 4.65 1,129,621 1,165,881 -36,259 7.00 79,061 Artisan High Income Fund - Institutional Sh…APHFX 4.65 9.23 122,386 1,129,621 1,165,881 -36,259 7.00 79,061 Equity 66.02 16,039,389 13,833,098 2,206,292 1.60 256,942 Large Cap U.S. Equity 41.83 10,163,330 9,020,151 1,143,179 1.10 111,998 Mutual Funds & ETFs 41.83 10,163,330 9,020,151 1,143,179 1.10 111,998 iShares Russell 1000 ETF IWB 41.83 339.57 29,930 10,163,330 9,020,151 1,143,179 1.10 111,998 Small Cap U.S. Equity 2.18 530,568 453,131 77,437 1.04 5,540 Mutual Funds & ETFs 2.18 530,568 453,131 77,437 1.04 5,540 Fidelity Small Cap Index Fund FSSNX 2.18 27.20 19,506 530,568 453,131 77,437 1.04 5,540 Developed Markets Equity 15.94 3,872,392 3,178,510 693,882 2.71 105,101 Mutual Funds & ETFs 15.94 3,872,392 3,178,510 693,882 2.71 105,101 Fidelity International Index Fund FSPSX 15.94 57.33 67,546 3,872,392 3,178,510 693,882 2.71 105,101 Emerging Markets Equity 6.06 1,473,099 1,181,306 291,793 2.33 34,303 Mutual Funds & ETFs 6.06 1,473,099 1,181,306 291,793 2.33 34,303 Fidelity Emerging Markets Index Fund FPADX 6.06 12.11 121,643 1,473,099 1,181,306 291,793 2.33 34,303 Real Assets 4.72 1,146,415 1,158,241 -11,826 3.05 35,005 U.S. Listed Real Estate 4.72 1,146,415 1,158,241 -11,826 3.05 35,005 iShares Core U.S. REIT ETF USRT 4.72 56.56 20,269 1,146,415 1,158,241 -11,826 3.05 35,005 City of Cupertino ▎ 2236 Client CONFIDENTIAL Investment Policies Provided by U.S Bank 37 1 | P a g e Other Post- Employment Benefits (OPEB) Investment Policy Citywide Policy Manual Attachments: N/A Effective Date: December 3, 2024 Responsible Department: Administrative Services Related Policies & Notes: City Investment Policy, Pension Investment Policy Overview In response to the Government Accounting Standards Board (GASB) Statement No. 45, replaced by GASB Statement No. 74 and GASB Statement No. 75, new disclosure requirements for Other Post-employment Benefit (OPEB) Plans, the City of Cupertino has adopted a Section 115 Trust and Plan that seeks to satisfy these liabilities for certain eligible employees Executive Summary Account Name: City of Cupertino OPEB Trust Account Number: 6746035000 Investment Authority: Full Investment Authority Current Assets: $40.7 million (September 2024) Time Horizon: Long-Term Target Rate of Return: 6.5% Communication Schedule: Meetings will be conducted at least quarterly U.S. Bank Portfolio Manager: Dennis Mullins Dennis.mullins@usbank.com 513-304-0398 U.S. Bank Relationship Manager : Ryan Maxey ryan.maxey@usbank.com 503-464-3789 City of Cupertino ▎ 2438 2 | P a g e Investment Objective: ‘Balanced’ This investment objective is designed to provide a moderate amount of current income with moderate growth of capital. Investors should have sufficient tolerance for price and return volatility and substantial periodic declines in investment value. This objective is recommended for investors with a long-term time horizon. The strategic asset allocation ranges and tactical targets for this objective are listed below: Investment Guidelines Overview This document defines the investment policy, guidelines and performance objectives applicable to the assets of The City of Cupertino’s OPEB Trust. The goal of this Policy is to create an investment framework within which the assets can be actively yet prudently managed. The purpose of this document is threefold. First, it will set forth an investment structure for managing the Portfolio assets. This structure is expected to produce an appropriate level of overall diversification and total investment return over the investment time horizon. Second, it will serve as to encourage effective communications between the organization and parties involved with investment management decisions. Third, these guidelines will provide a framework to measure ongoing investment performance. Within the constraints imposed by these policies, Investment Managers are expected to comply with all applicable fiduciary and due diligence requirements under the “prudent investor” rules, which state: “Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.” All applicable laws, rules and regulations from various local, state, federal and international political entities that may impact the Portfolio are to be adhered to. Asset Class Range Target Fixed Income 20-40% 29% Equities Real Estate 0-15% 5% Commodities 0-10% 2% Cash 0-10% 1% City of Cupertino ▎ 2539 3 | P a g e Diversification Your Portfolio Manager is responsible for maintaining the balance between the various asset classes based on the investment objective’s strategic asset allocation. As a general policy, the Investment Manager will maintain reasonable diversification at all times by asset class, credit quality, issuer, sector, industry, and country. The following parameters shall be adhered to in managing the portfolio: Fixed Income Assets The fixed income investments are to maintain intermediate-term average weighted duration, between three-seven years. At the time of purchase, no single fixed income issuer shall exceed 2% of the total market value of the Portfolio, with the exception of U.S. Treasury or Agency obligations. The direct high-yield portion shall constitute no more than 10% of the total market value of the Portfolio. Hedged fixed income positions shall constitute no more than 10% of the total market value of the Portfolio. Equity & Growth Assets The domestic equity investments are expected to be diversified at all times by size, industry, sector, and style (Large Cap, Mid Cap, and Small Cap). At the time of purchase, no individual equity security shall exceed 2% of the total market value of the Portfolio. The real estate investments shall be captured through the use of diversified mutual funds or ETFs investing in REITs; and shall constitute no more than 15% of the total market value of the Portfolio . The commodities investments shall be captured through the use of diversified mutual funds or ETFs; and shall constitute no more than 10% of the total market value of the Portfolio. Hedged equity positions shall constitute no more than 10% of the total market value of the Portfolio Permitted Asset Classes and Security Types Fixed Income & Cash Equivalent Investments: Domestic Certificates of Deposit (rated A-1/P-1 or better) Domestic Commercial Paper (rated A-1/P-1 or better) Floating Rate Notes Money Market Mutual Funds U.S. Treasury Bonds, Bills and Notes U.S. Agency (and Instrumentality) Discount Notes, Notes, and Bonds Treasury Inflation-Protected Securities (TIPS) Municipal Bonds and Notes Corporate Bonds Mortgage-Backed Bonds (MBS) City of Cupertino ▎ 2640 4 | P a g e Asset-Backed Bonds (ABS) High-Yield Bonds (rated B-/B3 or better) Dollar denominated Foreign Bonds and Notes Bond Mutual Funds Equity Investments: Common & Preferred Stocks American Depository Receipts (ADRs) Domestic and International Equity Mutual Funds (Open and Closed) Emerging Market Equity Funds or Exchange Traded Funds (ETFs) Alternative Investments: Commodities Mutual Funds or Exchange Traded Notes (ETNs) REIT Investment or Pooled Strategy or Fund of REITs Registered Hedge Funds or Hedge Fund of Funds Prohibited Asset Classes and Transactions The Investment Manager is prohibited from purchasing or holding any of the following types of investments: Partnerships unless investing in Master Limited Partnerships invested in a mutual fund and limited in scope and allocation of Portfolio based on asset class limitations of table above Letter stock and other unregistered securities; physical commodities or other commodity contracts; and short sales or margin transactions Investments in the equity securities of any company with a record of less than three years continuous operation, including the operation of any predecessor Investments for the purpose of exercising control of management Direct or indirect exposure to cryptocurrencies Leveraged securities, other than registered Hedged Equity and Hedged Fixed Income positions Duties and Responsibilities 1) CITY OF CUPERTINO AUDIT COMMITTEE a) Establish, approve, and maintain investment objectives, guidelines, and policies (including this Policy). b) Appoint Investment Managers who can be reasonably expected to adhere to the investment guidelines and meet the investment objectives as established. c) Monitor the investment performance of the Portfolio and compare actual investment performance relative to an appropriate benchmark index given the stated investment guidelines and objectives set forth in this Policy. d) Conduct a formal review of the Portfolio’s asset allocation, investment structure and performance annually or more frequently as the need arises. e) Periodically review the Portfolio performance against objectives. City of Cupertino ▎ 2741 5 | P a g e 2) CITY OF CUPERTINO CITY COUNCIL a) Adopt the Policy by resolution of the City Council on an annual basis. 3) PORTFOLIO MANAGER The Portfolio Manager will be responsible for carrying out the activities related to the Portfolio in accordance with the Policy including: a) Manage the day-to-day investment of Portfolio assets in accordance with the Policy guidelines and objectives included herein. b) Exercise full investment discretion and prudence in the selection and diversification of investments. c) Promptly bring to the attention of the City Treasurer or designee any investment that is subsequently downgraded and fails to meet the quality guidelines, along with a recommendation of retention or disposal. d) Provide on a quarterly basis the following investment reporting: (i) Year-to-date rate of return (ii) Annualized one, three, five, etc. rates of return e) Provide annually to the City’s Audit Committee a commentary and analysis of investment performance to include an evaluation of the current and future investment environment and potential impact of the investment environment on achievement of investment objectives. Investment Policy Statement Review The City’s Audit Committee will review and the Cupertino City Council will adopt this Investment Policy Statement at least annually to determine whether stated investment objectives are still relevant and the continued feasibility of achieving the same. It is not expected that the Policy will change frequently. In particular, short-term changes in the financial markets should not require adjustments to the Policy. If at any time the Portfolio Manager finds the above guidelines too restrictive or possibly injurious to investment returns, they should communicate that information immediately to the City’s Audit Committee. City Manager’s signature: _______________________________ Date: _______________________________ City of Cupertino ▎ 2842 6 | P a g e Revisions: 6.5.2018, 11.19.2019, 11.17.2020, 12.7.2021, 12.06.2022, 12.05.2023, 12.03.2024 Director of Administrative Services’ signature: _______________________________ Date: _______________________________ City of Cupertino ▎ 2943 1 | P a g e Pension Trust Investment Policy Citywide Policy Manual Attachments: N/A Effective Date: December 3, 2024 Responsible Department: Administrative Services Related Policies & Notes: N/A Investment Policy Statement Overview The City has established a Section 115 Trust with PARS to assist in stabilizing the potential impact of pension cost volatility on the City’s operating budget. The City intends to use the Section 115 Trust to pre-fund pension costs and proactively address the unfunded liability. The City’s goal is to have sufficient assets in the trust to increase the funded status to over 80% within 20 years, as well as fund the difference between a 7.0% and 6.25% discount rate. Executive Summary Account Name: City of Cupertino Pension Trust Account Number: 6746050100 Investment Authority: Full Investment Authority Current Assets: $23.0 Million (September 2024) Time Horizon: Long-Term Target Rate of Return: 6.25% Communication Schedule: Meetings will be conducted at least quarterly U.S. Bank Portfolio Manager: Dennis Mullins Dennis.mullins@usbank.com 513-304-0398 U.S. Bank Relationship Manager : Ryan Maxey ryan.maxey@usbank.com 503-464-3789 City of Cupertino ▎ 3044 2 | P a g e Investment Objective: ‘Balanced’ This investment objective is designed to provide a moderate amount of current income with moderate growth of capital. Investors should have sufficient tolerance for price and return volatility and substantial periodic declines in investment value. This objective is recommended for investors with a long-term time horizon. The strategic asset allocation ranges and tactical targets for this objective are listed below: Investment Guidelines Overview This document defines the investment policy, guidelines and performance objectives applicable to the assets of The City of Cupertino’s Pension Trust. The goal of this Policy is to create an investment framework within which the assets can be actively yet prudently managed. The purpose of this document is threefold. First, it will set forth an investment structure for managing the Portfolio assets. This structure is expected to produce an appropriate level of overall diversification and total investment return over the investment time horizon. Second, it will serve as to encourage effective communications between the organization and parties involved with investment management decisions. Third, these guidelines will provide a framework to measure ongoing investment performance. Within the constraints imposed by these policies, Investment Managers are expected to comply with all applicable fiduciary and due diligence requirements under the “prudent investor” rules, which state: “Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.” All applicable laws, rules and regulations from various local, state, federal and international political entities that may impact the Portfolio are to be adhered to. Asset Class Range Benchmark Target Fixed Income 20-40% 29% Equities 50-70% 63% Real Estate Commodities 0-10% 2% Cash 0-10% 1% City of Cupertino ▎ 3145 3 | P a g e Diversification Your Portfolio Manager is responsible for maintaining the balance between the various asset classes based on the investment objective’s strategic asset allocation. As a general policy, the Investment Manager will maintain reasonable diversification at all times by asset class, credit quality, issuer, sector, industry, and country. The following parameters shall be adhered to in managing the portfolio: Fixed Income Assets The fixed income investments are to maintain intermediate-term average weighted duration, between three-seven years. At the time of purchase, no single fixed income issuer shall exceed 2% of the total market value of the Portfolio, with the exception of U.S. Treasury or Agency obligations. The direct high-yield portion shall constitute no more than 10% of the total market value of the Portfolio. Hedged fixed income positions shall constitute no more than 10% of the total market value of the Portfolio Equity & Growth Assets The domestic equity investments are expected to be diversified at all times by size, industry, sector, and style (Large Cap, Mid Cap, and Small Cap). At the time of purchase, no individual equity security shall exceed 2% of the total market value of the Portfolio. The real estate investments shall be captured through the use of diversified mutual funds or ETFs investing in REITs; and shall constitute no more than 15% of the total market value of the Portfolio . The commodities investments shall be captured through the use of diversified mutual funds or ETFs; and shall constitute no more than 10% of the total market value of the Portfolio. Hedged equity positions shall constitute no more than 10% of the total market value of the Portfolio Permitted Asset Classes and Security Types Fixed Income & Cash Equivalent Investments: Domestic Certificates of Deposit (rated A-1/P-1 or better) Domestic Commercial Paper (rated A-1/P-1 or better) Floating Rate Notes Money Market Mutual Funds U.S. Treasury Bonds, Bills and Notes U.S. Agency (and Instrumentality) Discount Notes, Notes, and Bonds Treasury Inflation-Protected Securities (TIPS) Municipal Bonds and Notes Corporate Bonds Mortgage-Backed Bonds (MBS) City of Cupertino ▎ 3246 4 | P a g e Asset-Backed Bonds (ABS) High-Yield Bonds (rated B-/B3 or better) Dollar denominated Foreign Bonds and Notes Bond Mutual Funds Equity Investments: Common & Preferred Stocks American Depository Receipts (ADRs) Domestic and International Equity Mutual Funds (Open and Closed) Emerging Market Equity Funds or Exchange Traded Funds (ETFs) Alternative Investments: Commodities Mutual Funds or Exchange Traded Notes (ETNs) REIT Investment or Pooled Strategy or Fund of REITs Registered Hedge Funds or Hedge Fund of Funds Prohibited Asset Classes and Transactions The Investment Manager is prohibited from purchasing or holding any of the following types of investments: Partnerships unless investing in Master Limited Partnerships invested in a mutual fund and limited in scope and allocation of Portfolio based on asset class limitations of table above Letter stock and other unregistered securities; physical commodities or other commodity contracts; and short sales or margin transactions Investments in the equity securities of any company with a record of less than three years continuous operation, including the operation of any predecessor Investments for the purpose of exercising control of management Direct or indirect exposure to cryptocurrencies Leveraged securities, other than registered Hedged Equity and Hedged Fixed Income positions Duties and Responsibilities 1) CITY OF CUPERTINO AUDIT COMMITTEE a) Establish, approve, and maintain investment objectives, guidelines, and policies (including this Policy). b) Appoint Investment Managers who can be reasonably expected to adhere to the investment guidelines and meet the investment objectives as established. c) Monitor the investment performance of the Portfolio and compare actual investment performance relative to an appropriate benchmark index given the stated investment guidelines and objectives set forth in this Policy. d) Conduct a formal review of the Portfolio’s asset allocation, investment structure and performance annually or more frequently as the need arises. e) Periodically review the Portfolio performance against objectives. City of Cupertino ▎ 3347 5 | P a g e 2) CITY OF CUPERTINO CITY COUNCIL a) Adopt the Policy by resolution of the City Council on an annual basis. 3) PORTFOLIO MANAGER The Portfolio Manager will be responsible for carrying out the activities related to the Portfolio in accordance with the Policy including: a) Manage the day-to-day investment of Portfolio assets in accordance with the Policy guidelines and objectives included herein. b) Exercise full investment discretion and prudence in the selection and diversification of investments. c) Promptly bring to the attention of the City Treasurer or designee any investment that is subsequently downgraded and fails to meet the quality guidelines, along with a recommendation of retention or disposal. d) Provide on a quarterly basis the following investment reporting: (i) Year-to-date rate of return (ii) Annualized one, three, five, etc. rates of return e) Provide annually to the City’s Audit Committee a commentary and analysis of investment performance to include an evaluation of the current and future investment environment and potential impact of the investment environment on achievement of investment objectives. Investment Policy Statement Review The City’s Audit Committee will review and the Cupertino City Council will adopt this Investment Policy Statement at least annually to determine whether stated investment objectives are still relevant and the continued feasibility of achieving the same. It is not expected that the Policy will change frequently. In particular, short-term changes in the financial markets should not require adjustments to the Policy. If at any time the Portfolio Manager finds the above guidelines too restrictive or possibly injurious to investment returns, they should communicate that information immediately to the City’s Audit Committee. City Manager’s signature: _______________________________ Date: _______________________________ City of Cupertino ▎ 3448 6 | P a g e Revisions: 11.19.2019, 11.17.2020, 12.7.2021, 12.06.2022, 12.05.2023, 12.03.2024 Director of Administrative Services’ signature: _______________________________ Date: _______________________________ City of Cupertino ▎ 3549 Client CONFIDENTIAL Market Review Provided by Sub-Advisor - PFM Asset Management 50 PFM Asset Management is a division of U.S. Bancorp Asset Management, Inc. | For Institutional Investor or Investment Professional Use Only This material is not for inspection by, distribution to, or quotation to the general public. U.S. Equity •Domestic equity markets, as represented by the S&P 500 Index (S&P) and the Russell 3000 Index, returned 6.29%1 and 6.34% respectively in May. These strong returns were powered by the “Magnificent Seven” group of stocks (Microsoft, NVIDIA, Apple, Amazon, Alphabet, Meta and Tesla) which jumped 13.36% during the month (as measured by the Bloomberg Magnificent 7 ETF). •This outperformance was reflected in the sector returns, as the Information Technology sector returned 10.89% for the month, followed closely by Telecom and Consumer Discretionary. The Healthcare sector was the only one of the 11 with negative returns for the month, returning -5.55% in May. •Positive returns were seen across all capitalizations, with small-caps (Russell 2000 Index) returning 5.34%, mid-caps (Russell Midcap Index) returning 5.72% and large-caps (Russell 1000 Index) returning 6.38%. Growth stocks outperformed value stocks across all capitalizations during the month. •According to FactSet Earnings Insight (as of May 30, 2025), the blended year-over-year (YoY) earnings growth for the S&P in Q1 was 13.3%, significantly outpacing analysts’ forecast of 7.2%. The Magnificent Seven companies reported robust earnings growth of 27.7%, though this is slightly lower than the average growth rate of the last three quarters. For Q2, analysts are projecting a more moderate earnings growth of 5.0%. For the calendar year 2025 overall, analysts are projecting YoY earnings growth of 9.1%. Non-U.S. Equity •Non-U.S. equity markets, represented by the MSCI ACWI ex USA Index returned 4.58% in May. Developed markets, represented by the MSCI EAFE Index returned 4.58%. Emerging markets (EM), as represented by the MSCI Emerging Markets Index, returned 4.27% with Chinese equities (MSCI China Index) returning 2.47%. •Within the MSCI ACWI ex USA Index, all 11 sectors posted positive returns. Information Technology was also the best performing sector for the month, returning 8.64%, while the Industrials sector was the second-best performer, returning 7.73%. Healthcare was the worst performing sector, posting a return of 0.26%. Fixed Income •Tariff concerns eased somewhat during May while concerns over the U.S. fiscal deficit flared up following the House’s passage of the administration’s latest tax cut and spending bill. Treasury yields rose along the curve in May, with the 2- and 5-year yields rising 29 and 23 basis points (bps) respectively. The yield on the 10-year also rose 24 bps, while the 30-year U.S. Treasury rose 25 bps, leading to a slightly steeper curve on the long end. •The Bloomberg U.S. Aggregate Bond Index returned -0.72% in May. Investment-grade (IG) credit returned -0.07%, AAA- rated bonds returned -0.61%, AA-rated bonds returned -0.59%, A-rated bonds returned -0.22%, while BBB-rated bonds saw a positive return of 0.26%. High-yield corporates, as represented by ICE BofA U.S. High Yield Index, returned 1.68% during the month, while the Ice BofA US Treasury Index returned -1.07%. Spreads compressed over the month across the ratings spectrum. Diversifying Assets •During May, Real Estate Investment Trusts (REITs), as represented by the MSCI US REIT Index and the FTSE NAREIT All Equity REITs Index returned 2.05% and 2.12% respectively. The Lodging and Resorts sector saw the strongest performance for the month while the Healthcare sector was the most challenged. Listed Infrastructure, represented by the MSCI World Core Infrastructure Index, returned 1.19% for the month. This positive performance came despite rising rates, supported by strong equity market performance. Items to Watch •We continue to watch the evolving tariff landscape and evaluate possible impacts on markets, both domestically and internationally. While the legal standing of the current tariffs imposed under the International Emergency Economic Powers Act remains under review by the courts, trade deal negotiations are slowly being made with various partners, including the UK. •The health of the consumer remains top of mind as “soft data,” such as sentiment, continues to hover near a three-year low. In May, the University of Michigan’s consumer sentiment survey registered at 52.2 as consumers deal with uncertainty around tariffs and interest rates. Positive signs remain, however, as the YoY inflation rate eased to 2.3%, the lowest since February 2021, and the unemployment rate remained steady at 4.2% in April. Job openings rose 191,000 in April, above market expectations, and personal income rose 0.8% month over month, pointing to a slightly rosier picture for the consumer than surveys may convey. Sources •Bloomberg •FactSet •BEA U.S. Bureau of Economic Analysis •https://www.cafc.uscourts.gov/opinions-orders/25-1812. ORDER.5-29-2025_2522636.pdf 1 - All returns are expressed as total returns (price returns net of dividends). Multi-Asset Class | June 2025 Monthly Market Review ▎ 3751 PFM Asset Management is a division of U.S. Bancorp Asset Management, Inc. | For Institutional Investor or Investment Professional Use Only This material is not for inspection by, distribution to, or quotation to the general public. Total Return of Major Indices Domestic Equity MTD QTD YTD 1 YR S&P 500 6.29% 5.57% 1.06% 13.50% Russell 3000 6.34% 5.63% 0.63% 13.10% Russell 2000 5.34% 2.90% -6.85% 1.17% Russell 1000 6.38% 5.75% 1.00% 13.72% International Equity MTD QTD YTD 1 YR MSCI ACWI ex-U.S.4.58% 8.36% 14.03% 13.75% MSCI EAFE 4.58% 9.37% 16.87% 13.33% MSCI Emerging Markets 4.27% 5.64% 8.73% 13.04% Fixed Income MTD QTD YTD 1 YR Bloomberg Barclays U.S. Agg -0.72% -0.33% 2.45% 5.46% Bloomberg Barclays Global Agg -0.36% 2.57% 5.28% 7.03% Bloomberg Barclays U.S. HY 1.68% 1.68% 2.64% 9.28% Alternatives and Diversifying MTD QTD YTD 1 YR MSCI U.S. REIT 2.05% -0.64% 0.11% 11.41% FTSE NAREIT Index 2.12% -0.62% 0.29% 12.35% MSCI World Core Infrastructure 1.19% 4.10% 11.99% 17.56% Bloomberg Commodity -0.58% -5.36% 3.05% 1.69% Economic Indicators Domestic Current Previous Month Unemployment Rate (%)4.2%4.2% Initial Jobless Claims (4 week average)231 K 231 K CB Leading Economic Indicators -1.0 -0.8 Capacity Utilization 77.7%77.8% GDP (annual growth rate)-0.2%2.4% University of Michigan Consumer Confidence 52.2 52.2 New Home Starts 743 K 670 K Existing Home Sales 4 MM 4 MM Retail Sales (YoY)5.2%5.2% U.S. Durable Goods (MoM)-6.3%7.6% Consumer Price Index (YoY)2.3%2.4% Producer Price Index (MoM)-0.1%-1.3% Developed International*3/31/2025 12/31/2024 Market GDP (annual rate)1.6%1.5% Market Unemployment 4.6%4.6% 3.90%3.96% 4.40% 4.93% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0%U.S. Treasury Yield Curve 5/31/2024 4/30/2025 5/31/2025 3-mo 2-yr 5-yr 10-yr 30- 8 13 18 23 28 33 May '20 May '21 May '22 May '23 May '24 May '25 P/E Ratios of Major Stock Indices** S&P 500 S&P 500 5-Year Average Russell 2000 Russell 2000 5-Year Average MSCI ACWI ex-U.S.MSCI ACWI ex-U.S. 5-Year Average Cons.Disc.Cons.Staples Energy Financial H'lthcare Industrial Info. Tech Materials RealEstate Telecom Utilities MTD 9.44% 1.81% 0.99% 4.42% -5.55% 8.83% 10.89% 3.03% 0.99% 9.63% 3.83% QTD 9.10% 3.06%-12.79%2.25% -9.05% 9.04% 12.69% 0.79% -0.22% 10.45% 3.93% YTD -5.96% 8.45% -3.88% 5.81% -3.10% 8.83% -1.57% 3.62% 3.35% 3.59% 9.07% -15% -10% -5% 0% 5% 10% 15% Stock Market Sector Performance (S&P 500) Source: Bloomberg. Data as of May 31, 2025, unless otherwise noted. *Developed market data is calculated with respect to the weightings in the MSCI World ex-U.S. Index. Most current data is as of March 31, 2025 due to release dates of numerous countries. **P/E ratios are calculated based on one-year-forward estimates and adjusted to include only positive earning results for consistency. Indices shown are not available for investment. The index data reference herein is the property of the index provider and/or its licensors. The index provider assumes no liability in connections with its use and does not sponsor, endorse or recommend the products or services contained herein. Index returns do not reflect payment of any sales charges or fees an investor would pay to purchase the securities they represent. The imposition of these fees and charges would cause investment performance to be lower than the performance shown. The views expressed within this material constitute the perspective and judgment of U.S. Bancorp Asset Management, Inc. at the time of distribution and are subject to change. Any forecast, projection, or prediction of the market, the economy, economic trends, and equity or fixed-income markets are based upon current opinion as of the date of issue and are also subject to change. Opinions and data presented are not necessarily indicative of future events or expected performance. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. No representation is made as to its accuracy or completeness. PFM Asset Management serves clients in the public sector and is a division of U.S. Bancorp Asset Management, Inc., which is the legal entity providing investment advisory services. U.S. Bancorp Asset Management, Inc. is a registered investment adviser, a direct subsidiary of U.S. Bank N.A. and an indirect subsidiary of U.S. Bancorp. U.S. Bank N.A. is not responsi-ble for and does not guarantee the products, services, or performance of U.S. Bancorp Asset Management, Inc. NOT FDIC INSURED : NO BANK GUARANTEE : MAY LOSE VALUE ▎ 3852 Client CONFIDENTIAL Important disclosures, definitions of terms and index descriptions Provided by U.S. Bank If you have questions regarding this information or wish to receive definitions of any additional terms or indexes used in this report, please contact your team. 53 Client CONFIDENTIAL Important disclosures (page 1 of 4) The information provided here is not intended to replace your account statement. Your account statement is the official record of your account. Equal Housing Lender. Credit products are offered by U.S. Bank National Association and subject to normal credit approval. Deposit products offered by U.S. Bank National Association. Member FDIC. For use in one-on-one meetings/presentations. This information represents the opinion of U.S. Bank. The views are subject to change at any time based on market or other conditions and are current as of the date indicated on the materials. This is not intended to be a forecast of future events or guarantee of future results. The factual information provided has been obtained from sources believed to be reliable but is not guaranteed as to accuracy or completeness. U.S. Bank and its representatives do not provide tax or legal advice. Your tax and financial situation is unique. You should consult your tax and/or legal advisor for advice and information concerning your particular situation. Past performance is no guarantee of future results. All performance data, while obtained from sources deemed to be reliable, are not guaranteed for accuracy. Indexes shown are unmanaged and are not available for direct investment, nor are they subject to fees and expenses. Performance reports included may show performance results gross of fees and expenses. If fees and expenses were included, the performance would be lower. If you have any questions, please speak with your relationship manager for additional information. Based on our strategic approach to creating diversified portfolios, guidelines are in place concerning the construction of portfolios and how investments should be allocated to specific asset classes based on client goals, objectives and tolerance for risk. Not all recommended asset classes will be suitable for every portfolio. Diversification and asset allocation do not guarantee returns or protect against losses. City of Cupertino ▎ 4054 Client CONFIDENTIAL Important disclosures (page 2 of 4) Equity securities are subject to stock market fluctuations that occur in response to economic and business developments. Stocks of small-capitalization companies involve substantial risk. These stocks historically have experienced greater price volatility than stocks of larger companies and may be expected to do so in the future. Stocks of mid-capitalization companies can be expected to be slightly less volatile than those of small-capitalization companies, but still involve substantial risk and may be subject to more abrupt or erratic movements than large-capitalization companies. The value of large-capitalization stocks will rise and fall in response to the activities of the company that issued them, general market conditions and/or economic conditions. Growth investments focus on stocks of companies whose earnings/profitability are accelerating in the short term or have grown consistently over the long term. Such investments may provide minimal dividends, which could otherwise cushion stock prices in a market decline. Stock value may rise and fall significantly based, in part, on investors' perceptions of the company, rather than on fundamental analysis of the stocks. Investors should carefully consider the additional risks involved in growth investments. Value investments focus on stocks of income-producing companies whose price is low relative to one or more valuation factors, such as earnings or book value. Such investments are subject to risks that their intrinsic values may never be realized by the market, or such stocks may turn out not to have been undervalued. Investors should carefully consider the additional risks involved in value investments. International investing involves special risks, including foreign taxation, currency risks, risks associated with possible differences in financial standards and other risks associated with future political and economic developments. Investing in emerging markets may involve greater risks than investing in more developed countries. In addition, concentration of investments in a single region may result in greater volatility. Investments in real estate securities can be subject to fluctuations in the value of the underlying properties, the effect of economic conditions on real estate values, changes in interest rates and risks related to renting properties (such as rental defaults). There are special risks associated with an investment in commodities, including market price fluctuations, regulatory changes, interest rate changes, credit risk, economic changes and the impact of adverse political or financial factors. Investments in fixed income securities are subject to various risks, including changes in interest rates, credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. Investment in fixed income securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term securities. Investments in lower-rated and non-rated securities present a greater risk of loss to principal and interest than higher-rated securities. Investments in high yield bonds offer the potential for high current income and attractive total return, but involve certain risks. Changes in economic conditions or other circumstances may adversely affect a bond issuer's ability to make principal and interest payments. City of Cupertino ▎ 4155 Client CONFIDENTIAL Important disclosures (page 3 of 4) The municipal bond market is volatile and can be significantly affected by adverse tax, legislative or political changes and the financial condition of the issues of municipal securities. Interest rate increases can cause the price of a bond to decrease. Income on municipal bonds is free from federal taxes, but may be subject to the federal alternative minimum tax (AMT), state and local taxes. Treasury Inflation-Protected Securities (TIPS)offer a lower return compared to other similar investments and the principal value may increase or decrease with the rate of inflation. Gains in principal are taxable in that year, even though not paid out until maturity. Non-financial specialty assets, such as real estate, farm, ranch and timber properties, oil, gas and mineral interests or closely-held business interests are complex and involve unique risks specific to each asset type, including the total loss of value. Special risk considerations may include natural events or disasters, complex tax considerations and lack of liquidity. Specialty assets may not be suitable for all investors. Alternative investments very often use speculative investment and trading strategies. There is no guarantee that the investment program will be successful. Alternative investments are designed only for investors who are able to tolerate the full loss of an investment. These products are not suitable for every investor even if the investor does meet the financial requirements. It is important to consult with your investment professional to determine how these investments might fit your asset allocation, risk profile and tax situation. Hedge funds are speculative and involve a high degree of risk. An investment in a hedge fund involves a substantially more complicated set of risk factors than traditional investments in stocks or bonds, including the risks of using derivatives, leverage and short sales, which can magnify potential losses or gains. Restrictions exist on the ability to redeem or transfer interests in a fund. Exchange-traded funds (ETFs)are baskets of securities that are traded on an exchange like individual stocks at negotiated prices and are not individually redeemable. ETFs are designed to generally track a market index and shares may trade at a premium or a discount to the net asset value of the underlying securities. Private equity investments provide investors and funds the potential to invest directly into private companies or participate in buyouts of public companies that result in a delisting of the public equity. Investors considering an investment in private equity must be fully aware that these investments are illiquid by nature, typically represent a long-term binding commitment and are not readily marketable. The valuation procedures for these holdings are often subjective in nature. Private debt investments may be either direct or indirect and are subject to significant risks, including the possibility of default, limited liquidity and the infrequent availability of independent credit ratings for private companies. Structured products are subject to market risk and/or principal loss if sold prior to maturity or if the issuer defaults on the security. Investors should request and review copies of Structured Products Pricing Supplements and Prospectuses prior to approving or directing an investment in these securities. City of Cupertino ▎ 4256 Client CONFIDENTIAL Important disclosures (page 4 of 4) Mutual fund investing involves risk and principal loss is possible. Investing in certain funds involves special risks, such as those related to investments in small- and mid-capitalization stocks, foreign, debt and high-yield securities and funds that focus their investments in a particular industry. Please refer to the fund prospectus for additional details pertaining to these risks. An investment in money market funds is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Although these funds seek to preserve the value of an investment at $1.00 per share, it is possible to lose money by investing in these funds. Holdings of First American Funds: U.S. Bancorp Asset Management, Inc. is a registered investment advisor and subsidiary of U.S. Bank National Association. U.S. Bank National Association is a separate entity and wholly owned subsidiary of U.S. Bancorp. U.S. Bank is not responsible for and does not guarantee the products, performance or services of U.S. Bancorp Asset Management. U.S. Bancorp Asset Management, Inc. serves as an investment advisor to First American Funds. Holdings of Nuveen mutual funds: Firstar Capital Corporation (Firstar Capital), an affiliate of U.S. Bancorp, holds a less-than-10 percent ownership interest in Windy City Investments Holdings, LLC which was formerly the parent of Windy City Investment Inc. and the indirect parent of Nuveen Fund Advisors, LLC which is the investment advisor to the Nuveen Mutual Funds. On October 1, 2014, Windy City Investments, Inc. was sold to Teachers Insurance and Annuity Association of America. As a result of the sale, U.S. Bancorp no longer has an indirect ownership interest in Nuveen Fund Advisors, LLC. Depending on the outcome of certain factors, Firstar Capital might in the future receive an earn-out payment in respect of its interest in Windy City Investment Holdings, LLC, under the terms of the sale. Non- proprietary mutual funds: U.S. Bank may enter into agreements with other non-proprietary mutual funds or their service providers whereby U.S. Bank provides shareholder services and/or sub-transfer agency, custodial and other administrative support services and receives compensation for these services. Compensation received by U.S. Bank directly or indirectly from mutual funds does not increase fund fees and expenses beyond what is disclosed in the fund prospectuses. For more information, review the fund prospectus. City of Cupertino ▎ 4357 Client CONFIDENTIAL Definitions of report and statement terms (page 1 of 5) Accredited Investor: Private placement securities generally require that investors be accredited due to the additional risks and speculative nature of the securities. For natural persons, the criteria is met by a net worth of more than $1 million (excluding primary residence) or an income of more than $200,000 individually ($300,000 jointly) for the two most recent years and a reasonable expectation for the same in the current year. For other entities, such as corporations, partnerships, trusts and employee benefit plans, the criteria is met with at least $5 million in assets. See full definition in Rule 501 of Regulation D under the Securities Act of 1933. Alpha: A measure of risk-adjusted performance. A statistic measuring that portion of a stock, fund or composite's total return attributable to specific or non-market risk. Alpha measures non-market return and indicates how much value has been added or lost. A positive Alpha indicates the fund or composite has performed better than its Beta would predict (i.e., the manager has added value above the benchmark). A negative Alpha indicates a fund or composite has underperformed given the composite's Beta. Alternative Investments: As used by U.S. Bank, an investment considered to be outside of the traditional asset classes of long-only stocks, bonds and cash. Examples of alternative investments include hedge funds, private equity, options and financial derivatives. Annualized Excess Return: Shows the difference between the annualized linked returns of a portfolio and the model benchmark. Performance reports provided annualize only periods greater than one year. Annualized or Annual Rate of Return: Represents the average annual change in the value of an investment over the periods indicated. Batting Average: Shows how consistently the portfolio return met or beat the market. Beta: A measure of your portfolio's risk relative to a benchmark. A portfolio with a beta of 1.5, for example, would be expected to return roughly 1.5 times the benchmark's return. A high Beta indicates a riskier portfolio. Bond Credit Rating: A grade given to bonds by a private independent rating service that indicates their credit quality. Ratings are the opinion of Standard & Poor's or other agencies as noted and not the opinion of U.S. Bank. Consumer Price Index (CPI): A measure of the average change in prices over time in a market basket of goods and services and is one of the most frequently used statistics for identifying periods of inflation and deflation. Convexity to Stated Maturity: A measure of the curvature in the relationship between bond prices and bond yields that demonstrates how the duration of a bond changes as the interest rate changes. Convexity is used as a risk-management tool and helps to measure and manage the amount of market risk to which a portfolio of bonds is exposed. This version of convexity measures the rate change in duration of a bond as the yield to (stated) maturity changes. City of Cupertino ▎ 4458 Client CONFIDENTIAL Definitions of report and statement terms (page 2 of 5) Cost basis/book value: The original value of an asset at the time it was acquired. This is normally the purchase price or appraised value at the time of acquisition. This data is for information purposes only. Cumulative Excess Return: Shows the difference between the annualized linked returns of a portfolio and the model benchmark. Performance reports provided use unannualized returns in periods up to one year, but annualized returns for periods exceeding one year. Downside Capture: The downside capture ratio reflects how a portfolio compares to a benchmark during periods when the benchmark is down. A downside capture ratio of 0.80 (or 80 percent) means the portfolio has historically declined only 80 percent as much as the benchmark during down markets. Downside Deviation: The deviation of returns that fall below a minimum acceptable return (MAR). Although the numerator includes only returns below the MAR, the denominator includes all returns in the performance period. This risk statistic is similar to the downside standard deviation except the sum is restricted to returns less than the MAR instead of the mean. Downside Standard Deviation: The deviation of returns that fall below the mean return. Although the numerator includes only returns below the mean, the denominator includes all returns in the performance period. This risk statistic is similar to the downside deviation except the sum is restricted to returns less than the mean instead of the minimum acceptable return (MAR). Effective Maturity: The date of a bond’s most likely redemption, given current market conditions, taking into consideration the optional and mandatory calls, the optional, mandatory and recurring puts, and the stated maturity. Estimated annual income: The amount of income a particular asset is anticipated to earn over the period indicted. The shares multiplied by the annual income rate. Gain/loss calculation: If an asset was sold, the difference between the proceeds received from the sale compared to the cost of acquiring the asset. If the value of the proceeds is the higher of the two numbers, then a gain was realized. If the value of the proceeds is the lower of the two numbers, a loss was incurred. This data is for information purposes only. Information Ratio: The information ratio compares the average excess return of the portfolio over its associated benchmark divided by the tracking error. M-Squared: The hypothetical return of the portfolio after its risk has been adjusted to match a benchmark. City of Cupertino ▎ 4559 Client CONFIDENTIAL Definitions of report and statement terms (page 3 of 5) Market Value: Publicly traded assets are valued using market quotations or valuation methods from financial industry services believed by us to be reliable. Assets, that are not publicly traded, may be reflected at values from other external sources or special valuations prepared by us. Assets for which a current value is not available may be reflected as not valued, at par value, or at a nominal value. Values shown do not necessarily reflect prices at which assets could have been bought or sold. Values are updated based on internal policy and may be updated less frequently than statement generation. Market Value Over Time: Many factors can impact the portfolio value over time, such as contributions to the account, distributions from the account, the investment of dividends and interest, the deduction of fees and expenses, and market performance. Modified Duration to Effective Maturity: A formula that expresses the measurable change in the value of a security in response to a change in interest rates. This version of Modified Duration takes into consideration a “horizon date/price” that is, given current conditions, the most likely redemption date/price using the set of calls/puts, as well as stated maturity. Modified Duration to Stated Maturity: A formula that expresses the measurable change in the value of a security in response to a change in interest rates. This version of Modified Duration uses stated maturity as the “horizon date/price” and ignores any potential call/put/pre- refunding, even if they are mandatory. Price/Earnings Ratio (P/E): The P/E ratio of a company is calculated by dividing the price of the company’s stock by its trailing 12-month earnings per share. A high P/E usually indicates that the market is paying a premium for current earnings because it believes in the firm’s ability to grow its earnings. A low P/E indicates the market has less confidence that the company’s earnings will increase. Within a portfolio, P/E is the weighted average of the price/earnings ratios of the stocks in the portfolio. Qualified Purchaser: Some private placement securities require that investors be Qualified Purchasers in addition to being Accredited Investors. For natural persons, the criteria is generally met when the client (individually or jointly) owns at least $5 million in investments. For other entities, such as corporations, partnerships, trusts and employee benefit plans, the criteria is met with at least $25 million in investments though there are other eligibility tests that may apply. See full definition in Section 2(a)(51) of the Investment Company Act of 1940. R-Squared: Measures the portion of the risk in your portfolio that can be attributed to the risk in the benchmark. Realized and Unrealized Gains/Losses: Are calculated for individual tax lots based on the records we have available. Some data may be incomplete or differ from what you are required to report on your tax return. Some data used in these calculations may have been obtained from outside sources and cannot be verified by U.S. Bank. The data is intended for informational purposes only and should not be used for tax reporting purposes. Please consult with your tax or legal advisor for questions concerning your personal tax or financial situation. City of Cupertino ▎ 4660 Client CONFIDENTIAL Definitions of report and statement terms (page 4 of 5) Residual Risk: The amount of risk specific to the assets in a portfolio distinct from the market, represented by a benchmark. Return: An indication of the past performance of your portfolio. Sharpe Ratio: Measures of risk-adjusted return that calculates the return per unit of risk, where risk is the Standard Deviation of your portfolio. A high Sharpe ratio indicates that the portfolio is benefiting from taking risk. Sortino Ratio: Intended to differentiate between good and bad volatility. Similar to the Sharpe ratio, except it uses downside deviation for the denominator instead of standard deviation, the use of which doesn't discriminate between up and down volatility. Spread: The difference between the yields of two bonds with differing credit ratings (most often, a corporate bond with a certain amount of risk is compared to a standard traditionally lower risk Treasury bond). The bond spread will show the additional yield that could be earned from a bond which has a higher risk. Standard Deviation: A measure of the volatility and risk of your portfolio. A low standard deviation indicates a portfolio with less volatile returns and therefore less inherent risk. Time-weighted Return: The method used to calculate performance. Time-weighted return calculates period by period returns that negates the effect of external cash flows. Returns for periods of greater than one year are reported as an annualized (annual) rate of return. Returns of less than one year are reported on a cumulative return basis. Cumulative return is the aggregate amount an investment has gained or lost over time, independent of the period involved. Tracking Error: A divergence between the price behavior of a position or a portfolio and the price behavior of a benchmark. This is often in the context of a hedge or mutual fund that did not work as effectively as intended, creating an unexpected profit or loss instead. Traditional Investments: As used by U.S. Bank, an investment made in equity, fixed income or cash securities, mutual funds or exchange- traded funds (ETFs) where the investor buys at a price with the goal that the investment will go up in value. Top 10 Holdings: The 10 assets with the highest market values in the account. Total Portfolio Gross of Fees: Represents all assets included in the calculation of the portfolio, before the deduction of trust and asset management fees, and is inclusive of all applicable third-party security fees and expenses. Details of those fees and expenses are provided in the security’s prospectus or offering documents. City of Cupertino ▎ 4761 Client CONFIDENTIAL Definitions of report and statement terms (page 5 of 5) Total Return: The rate of return that includes the realized and unrealized gains and losses plus income for the measurement period. Treynor Ratio: Measures the performance of a sector relative to risk by dividing the return of the sector in excess of the risk-free return by the sector's Beta. The higher the Treynor ratio, the better the return relative to risk. Turnover Percent: Indicates how frequently asset are bought and sold within a portfolio. Turnover Ratio: The percentage of a mutual fund’s or other investment vehicle's holdings that have been "turned over" or replaced with other holdings in a given year. Unrealized gain (loss)— The difference between the current market value (at the end of the statement period) and the cost to acquire the asset. If the current market value is higher than the cost, a gain is reflected. If the current market value is lower than the cost paid, a loss is reflected. This data is for information purposes only. Upside Capture: The upside capture ratio reflects how a portfolio compares to the selected model benchmark during periods when the benchmark is up. An upside capture ratio of 1.15 (or 115 percent) means the portfolio has historically beat the benchmark by 15 percent during up markets. Yield: The annual rate of return on an investment, expressed as a percentage. For bonds, it is the coupon rate divided by the market price. For stocks, it is the annual dividend divided by the market price. City of Cupertino ▎ 4862 Client CONFIDENTIAL Frequently used indexes (page 1 of 5) Bloomberg Barclays 1-3 year U.S. Treasury Index: Measures the performance of the U.S. government bond market and includes public obligations of the U.S. Treasury with a maturity between one year and up to (but not including) three years. Bloomberg Barclays 1-5 year U.S. Treasury Index: Includes all publicly issued, U.S. Treasury securities that have a remaining maturity of greater than or equal to one year and less than five years, are rated investment grade and have $250 million or more of outstanding face value. The Bloomberg Barclays 1-5 year Municipal Index: Measures the performance of municipal bonds with time to maturity of more than one year and less than five years. Bloomberg Barclays 7-year Municipal Index: Includes municipal bonds with a minimum credit rating of Baa that have been issued as part of a transaction of at least $50 million, have a maturity value of at least $5 million and a maturity range of four to six years. Bloomberg Barclays Global Aggregate Index ex-U.S. Index: Measure of global investment grade debt from 24 local currency markets. This multi-currency benchmark includes Treasury, government-related, corporate and securitized fixed-rate bonds from both developed and emerging markets issuers. Bloomberg Barclays Global Treasury ex-U.S. Index: Includes government bonds issued by investment-grade counties outside the United States, in local currencies, that have a remaining maturity of one year or more and are rated investment grade. Bloomberg Barclays High Yield Municipal Bond Index: An unmanaged index made up of bonds that are non-investment grade, unrated or below Ba1 bonds. Bloomberg Barclays Intermediate Aggregate Index: Consists of one- to 10-year governments, one- to 10-year corporate bonds, all mortgages and all asset-backed securities within the Aggregate Index. Bloomberg Barclays Mortgage-Backed Securities Index: Covers agency mortgage-backed pass-through securities (both fixed-rate and hybrid adjustable-rate mortgages) issued by Ginnie Mae (GNMA), Fannie Mae (FNMA), and Freddie Mac (FHLMC). Bloomberg Barclays U.S. Aggregate Bond Index: Measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities, asset-backed securities and commercial mortgage-backed securities. Bloomberg Barclays U.S. Corporate Bond Index: Measures the investment grade, fixed-rate, taxable corporate bond market and includes U.S. dollar-denominated securities publicly issued by U.S. and non-U.S. industrial, utility and financial issuers. City of Cupertino ▎ 4963 Client CONFIDENTIAL Frequently used indexes (page 2 of 5) Bloomberg Barclays U.S. Corporate High Yield Bond Index: Measures the U.S. dollar denominated, high yield, fixed-rate corporate bond market. Bloomberg Barclays U.S. Municipal Bond Index: Measures the investment grade, U.S. dollar-denominated, fixed tax-exempt bond market. The index includes state and local general obligation, revenue, insured and pre-refunded bonds. Bloomberg Barclays U.S. Treasury Index: Measures U.S. dollar-denominated, fixed-rate, nominal debt issued by the U.S. Treasury. Bloomberg Barclays U.S. Treasury Inflation-Protected Securities (TIPS) Index: An unmanaged index includes all publicly issued, U.S. TIPS that have at least one year remaining to maturity, are rated investment grade, and have $250 million or more of outstanding face value. Cambridge U.S. Private Equity Index: This index is based on returns data compiled for U.S. private equity funds (including buyout, growth equity and mezzanine funds) that represent the majority of institutional capital raised by private equity partnerships formed since 1986. Returns may be delayed by up to six months. Quarterly performance is prorated based on the cube root for the months of the quarter. Citigroup 3-Month Treasury Bills: An unmanaged index and represents monthly return equivalents of yield averages of the last three- month Treasury Bill issues. Citigroup 6-Month Treasury Bills: An unmanaged index and represents monthly return equivalents of yield averages of the last six- month Treasury Bill issues. Credit Suisse Leverage Loan Index: Represents tradable, senior-secured, U.S. dollar-denominated non-investment grade loans. Dow Jones Industrial Average (DJIA): The price-weighted average of 30 significant U.S. stocks traded on the New York Stock Exchange and NASDAQ. The DJIA is the oldest and single most watched index in the world. Dow Jones Select REIT Index: Measures the performance of publicly traded REITs and REIT-like securities in the U.S. and is a proxy for direct real estate investment, in part by excluding companies whose performance may be driven by factors other than the value of real estate. HFRI Indices: The Hedge Fund Research, Inc. (HFRI) indexes are a series of benchmarks designed to reflect hedge fund industry performance by constructing composites of constituent funds, as reported by the hedge fund managers listed within the HFR Database. City of Cupertino ▎ 5064 Client CONFIDENTIAL Frequently used indexes (page 3 of 5) HFRI Equity Hedge Total Index: Uses the HFR (Hedge Fund Research) database and consists only of equity hedge funds with a minimum of $50 million assets under management or a 12-month track record and that reported assets in U.S. dollars. HFRI Relative Value Fixed Income Corporate Index: Uses the HFR (Hedge Fund Research) database and consists of only relative value fixed income corporate funds with a minimum of $50 million assets under management or a 12-month track record and that reported assets in U.S. dollars. ICE BofAML 1-3 Year Corporate Index: Tracks U.S. dollar-denominated investment grade public debt issued in the U.S. bond market with maturities of one to three years. ICE BofAML 1-5 Year Corporate and Government Index: Tracks the performance of short-term U.S. investment grade government and corporate securities with maturities between one and five years. ICE BofAML U.S. 7-10 Year Index: Tracks the performance of U.S. dollar denominated investment grade rated corporate debt publicly issued in the U.S. domestic market and includes all securities with a remaining term to maturity of greater than or equal to seven years and less than 10 years. ICE BofAML Global Broad Market Index: Tracks the performance of investment grade public debt issued in the major domestic and Eurobond markets, including global bonds. ICE BofAML U.S. High Yield Master II Index: Commonly used benchmark index for high yield corporate bonds and measures the broad high yield market. J.P. Morgan Emerging Markets Bond Index Global (EMBI Global): Tracks total returns for traded external debt instruments in the emerging markets. London Interbank Offered Rate (LIBOR)3-months: The interest rate offered by a specific group of London banks for U.S. dollar deposits with a three-month maturity. London Interbank Offered Rate (LIBOR) 9-months:The interest rate offered by a specific group of London banks for U.S. dollar deposits with a nine-month maturity. MSCI All Country World Index (ACWI): Designed to measure the equity market performance of developed and emerging markets. City of Cupertino ▎ 5165 Client CONFIDENTIAL Frequently used indexes (page 4 of 5) Russell 2000 Value Index: Measures companies in the Russell 2000 Index having lower price-to-book ratios and lower forecasted growth values. The Russell 2000 Index includes the 2,000 firms from the Russell 3000 Index with the smallest market capitalizations. Russell 3000 Index: Measures the performance of the 3,000 largest U.S. securities based on total market capitalization. Russell Midcap Index: Measures the 800 smallest companies in the Russell 3000 Index. Russell Midcap Growth Index: Measures companies in the Russell Midcap Index having higher price-to-book ratios and higher forecasted growth values. Russell Midcap Value Index: Measures companies in the Russell Midcap Index having lower price-to-book ratios and lower forecasted growth values. MSCI All County World ex-U.S. Index (ACWI, excluding United States): Tracks the performance of stocks representing developed and emerging markets around the world that collectively comprise most foreign stock markets. U.S. stocks are excluded from the index. MSCI EAFE Index: Includes approximately 1,000 companies representing the stock markets of 21 countries in Europe, Australasia and the Far East. MSCI Emerging Markets (EM) Index: Designed to measure equity market performance in global emerging markets. MSCI World Index: Tracks equity market performance of developed markets through individual country indices. NAREIT Index: Includes REITs (Real Estate Investment Trusts) listed on the New York Stock Exchange, NASDAQ and American Stock Exchange. NASDAQ Composite Index: A market capitalization-weighted average of roughly 5,000 stocks that are electronically traded in the NASDAQ market. NCREIF Property Index (NPI): Measures the investment performance of a very large pool of individual commercial real estate properties acquired in the private market for investment purposes only. Russell 1000 Index: Measures the performance of the 1,000 largest companies in the Russell 3000 Index and is representative of the U.S. large capitalization securities market. City of Cupertino ▎ 5266 Client CONFIDENTIAL Frequently used indexes (page 5 of 5) Russell 1000 Growth Index: Measures companies in the Russell 1000 Index with higher price-to-book ratios and higher forecasted growth values. It includes the largest 1,000 firms in the Russell 3000 Index. Russell 1000 Value Index: Measures companies in the Russell 1000 Index with lower price-to-book ratios and lower forecasted growth values. It includes the largest 1,000 firms in the Russell 3000 Index. Russell 2000 Index: Measures the performance of the 2,000 smallest companies in the Russell 3000 Index and is representative of the U.S. small capitalization securities market. Russell 2000 Growth Index: Measures companies in the Russell 2000 Index having higher price-to-book ratios and higher forecasted growth values. and is representative of U.S. securities exhibiting growth characteristics. The Russell 2000 Index includes the 2,000 firms from the Russell 3000 Index with the smallest market capitalizations. S&P 500 Index: Consists of 500 widely traded stocks that are considered to represent the performance of the U.S. stock market. S&P Global ex-U.S. Property Index: Measures the investable universe of publicly traded property companies domiciled in developed and emerging markets excluding the United States. The companies included are engaged in real estate related activities such as property ownership, management, development, rental and investment. S&P GSCI: A composite index of commodity sector returns, representing an unleveraged, long-only investment in commodity futures that is broadly diversified across the spectrum of commodities. S&P/Case-Shiller Home Price Indexes: A group of indexes that track changes in home prices throughout the United States. Case- Shiller produces indexes representing certain metropolitan statistical areas (MSA) as well as a national index. Swiss Re Global Cat Bond Total Return Index: Tracks the aggregate performance of all U.S. dollar-denominated euros and Japanese yen-denominated catastrophe bonds, capturing all ratings, perils and triggers. U.S. Dollar Index: Indicates the general international value of the U.S. dollar by averaging the exchange rates between the U.S. dollar and six major world currencies. Wilshire 5000 Index: Composed of more than 6,700 publicly-traded U.S. companies and is designed to track the overall performance of the American stock markets. City of Cupertino ▎ 5367 CITY OF CUPERTINO Agenda Item 25-14189 Agenda Date: 7/28/2025 Agenda #: 5. Subject:INFORMATIONAL ITEM Receive the Treasurer's Investment Report for the Quarter Ending June 30, 2025 Receive the Treasurer's Investment Report for the Quarter Ending June 30, 2025 Presenter: Jonathan Orozco, Finance Manager, and Chandler 4:35(15) CITY OF CUPERTINO Printed on 7/24/2025Page 1 of 1 powered by Legistar™68 AUDIT COMMITTEE STAFF REPORT Meeting: July 28, 2025 Subject Receive the Treasurer's Investment Report for the Quarter Ending June 30, 2025 Recommended Action Receive the Treasurer's Investment Report for the Quarter Ending June 30, 2025 Reasons for Recommendation Background On May 14, 2024, the City Council approved the City Investment Policy. Per the City's Investment Policy, the Treasurer shall submit a quarterly investment report to the City Council approximately 45 days following the end of the quarter. In addition to the quarterly investment reports, monthly transaction reports are submitted to the City Council within 30 days of the end of the reporting period per California Government Code Section 53607. The quarterly investment report offers a more extensive discussion of the City's economy, cash flow, and investments. The City's Municipal Code Section 2.24.050 Investment Authority states that the Treasurer shall make a monthly report of all investment transactions to the City Council. The City's Municipal Code Section 2.48.020(A)(3) states that the Director of Administrative Services shall be appointed Treasurer and also shall act as ex officio Assessor and shall assess and collect all City taxes save and except for those collected by State and County officers for the City. Lastly, the City's Municipal Code Section 2.88.100 Duties–Powers– Responsibilities lists one of the powers and functions of the Audit Committee is "to review the quarterly Treasurer's Investment report." Per the referenced code provisions, a Treasurer's Investment Report is made available to the City Council quarterly. Treasurer's Investment Report The report provides an update on the City's investment portfolio for the month ending June 30, 2025. The report is as of July 21, 2025. 69 2 The attached statements include balances and transactions of the City's investments with the Local Agency Investment Fund (LAIF) and Chandler Asset Management. The Chandler investment report provides information on the investment type, issuer, purchase date, maturity date, cost value, par value, and market value for each security, as well as the weighted average maturity and weighted average yield of all investments. While not governed by the City's Investment Policy, statements for the Public Agency Retirement Services (PARS) Section 115 Trusts are also attached per a request from the Treasurer's Report subcommittee. The City's General Ledger cash and investments balance is $312.1 million, a $9.0 million increase from the prior quarter. Cash and Investments – General Ledger Balance Fund Type Quarter Ending March 31, 2025 Quarter Ending June 30, 2025 General Fund 197,105,425 208,590,133 Special Revenue 43,883,238 44,390,349 Debt Service 2,394,350 0 Capital Projects 42,091,140 41,841,019 Enterprise 10,315,657 10,030,919 Internal Service 7,591,730 7,228,079 Total $303,381,540 $312,080,500 The City pools cash for all funds except restricted funds. However, the City accounts for interest earnings, revenues, and expenditures separately for each fund to adequately meet the purpose and restrictions of each funding source. Pooling funds is a common and appropriate practice used in public agencies. By pooling funds, the City can benefit from economies of scale, diversification, liquidity, and ease of administration. The table below shows the bank balances for the City's cash and investments. Bank and General Ledger balances differ due to timing. Bank balances do not include outstanding checks and deposits in transit. The General Ledger is updated quarterly with interest earnings and annually with the year-end investment market values. 70 3 Cash and Investments – Bank Balance Quarter Ending March 31, 2025 Quarter Ending June 30, 2025 % of Portfolio Cash in banks and on hand Operating Checking (Wells Fargo) 44,830,424 51,674,890 16% Workers' Compensation Checking (Wells Fargo) 15,882 40,923 0% Payroll Checking (Wells Fargo) - - 0% Restricted for Bond Repayments1 (BNY Mellon) - - 0% Cash Equivalents Local Agency Investment Fund 67,313,421 68,055,207 21% Investments Investments (Chandler) 171,577,357 172,701,432 55% Restricted for Pension2 (PARS) 22,496,818 24,320,860 8% Total Cash and Investments3 $306,509,578 $316,793,313 100% 1 Cash held by fiscal agent for bond repayments 2 In accordance with GASB 67/68, the assets in the Section 115 Pension Trust are reported as restricted cash and investments in the General Fund. The assets can only be used to fund CalPERS costs. 3 Assets in the Section 115 OPEB Trust are excluded as the City cannot use these assets to fund its own operations. The assets are held in trust for retirees' post-employment health benefits. 4 Beginning December 31, 2024, Investment amount reflect cost value. Wells Fargo Accounts The City, in collaboration with Chandler and Wells Fargo's relationship manager, continues to evaluate options to maximize investment opportunities for excess funds held in the City's operating account. As previously reported, the operating account was converted to a "Government Advantage Checking" account, which offers full FDIC insurance and an interest rate of 3% through March 31, 2025. As of the end of the June 2025 quarter, there has been no change to the interest rate. Staff will continue to monitor market conditions and evaluate whether it remains beneficial to retain funds in the account or to transfer them into other eligible investment vehicles. A notable disbursement from this account occurred on May 28, 2025, when the City remitted $2,395,600 to The Bank of New York Mellon. This payment covered debt service obligations covering $2,115,000 principal and $280,600 accrued interest. Local Agency Investment Fund (LAIF) LAIF is an investment pool administered by the State of California Treasurer and governed by California Government Code. The City can withdraw funds from LAIF at any time. As a result, the City uses LAIF for short-term investment, liquidity, and yield. The City's LAIF account had a balance of $68.1 million. The quarterly interest rate was 4.40%. 71 4 Investment Portfolio In FY 2018-19, the City conducted a Request for Proposal (RFP) for investment management services and selected Chandler Asset Management. Under the City's Treasurer's direction, Chandler Asset Management manages the City's investment portfolio in accordance with the City's investment objectives. The City's investment objectives, in order of priority, are to provide:  Safety to ensure the preservation of capital in the overall portfolio  Sufficient liquidity for cash needs  A market rate of return consistent with the investment program The performance objective is to earn a total rate of return through a market cycle equal to or above the return on the benchmark index. Chandler Asset Management invests in high- quality fixed-income securities consistent with the City's Investment Policy and California Government Code to achieve the objective. The portfolio's market value was $173.8 million, compared to $171.4 million at the end of the previous quarter. The portfolio's market value fluctuates depending on interest rates. When interest rates decrease after an investment is purchased, the market value of the investment increases. In contrast, when interest rates increase after an investment is purchased, the market value of the investment decreases. At the time of purchase, the City intends to hold all investments until maturity, meaning that changes in market value will not impact the City's investment principal. If the market value decreases, the City will incur an unrealized loss. However, the loss will only be realized if the City sells its investments before their maturity. The market values for the portfolio were provided by Chandler Asset Management. Section 115 Trust Investment Portfolio The City established Section 115 Trusts to reduce pension rate volatility and pre -fund Other Post-Employment Benefits (OPEB) costs. These trusts are a tax-exempt investment tool that local governments can use to set aside funds for pension and retiree heal th costs. Contributions made to the trust can only be used to fund retirement plans. Investments in the Section 115 Trusts are governed by separate investment policies, which are distinct from the City's Investment Policy. On December 3, 2024, City Council approved the Pension Trust Investment Policy and OPEB Trust Investment Policy. Public Agency Retirement Services (PARS) administers the trust, while US Bank manages the investments in accordance with the approved investment policies. Both Section 115 Trusts are invested in "balanced" portfolios. The investment objective is designed to provide a moderate amount of current income with moderate growth of capital. This type of investment strategy is generally recommended for investors with a long-term horizon. The strategic asset allocation ranges for this investment objective are: 72 5 The Section 115 Pension Trust had a balance of $24.3 million, an increase of $1.8 million from the prior quarter due to investment gains. The Section 115 OPEB Trust had a balance of $42.7 million, an increase of $3.0 million from the prior quarter mainly due to investment losses. The quarterly investment return for OPEB Trust was 8.21% and Pension Trust was 8.19%. Compliance All of the City's investments comply with state law and the City's Investment Policy. In compliance with California Government Code 53646 (b)(3), the City maintains the ability to meet its expenditure requirements for the next six months. Sustainability Impact No sustainability impact. Fiscal Impact No fiscal impact. City Work Program Item/Description None City Council Goal Fiscal Strategy California Environmental Quality Act Not applicable. _____________________________________ Prepared by: __________________ Jonathan Orozco Finance Manager Reviewed by: __________________ Kristina Alfaro Director of Administrative Services and City Treasurer Approved for Submission by: __________________ Tina Kapoor Interim City Manager Attachments: A – Chandler Investment Report June 2025 B – Chandler Custodial Statement June 2025 C – PARS Pension and OPEB Account Statement June 2025 73 6 D – LAIF Account Statement June 2025 74 INVESTMENT REPORT City of Cupertino | As of June 30, 2025 CHANDLER ASSET MANAGEMENT | chandlerasset.com Chandler Team: For questions about your account, please call (800) 317-4747, or contact clientservice@chandlerasset.com Information contained herein is confidential. We urge you to compare this statement to the one you receive from your qualified custodian. Please see Important Disclosures at the end of the statement.75 TABLE OF CONTENTS City of Cupertino | As of June 30, 2025 ECONOMIC UPDATE ACCOUNT PROFILE CONSOLIDATED INFORMATION PORTFOLIO HOLDINGS TRANSACTIONS 1 76 ECONOMIC UPDATE 2 77    Recent economic data suggest slower growth in 2025 and greater market uncertainty as the effects of fiscal policy unfold.Inflationary trends have subsided, but some components remain sticky,and core levels remain above the Fed’s target.The labor market reflects improved balance between supply and demand for workers.While job creation has moderated, the unemployment rate remains low; however,continuing jobless claims remain elevated implying a less robust labor market.Given the economic outlook, we expect gradual normalization of monetary policy and a steepening yield curve. As broadly anticipated,the Federal Open Market Committee (FOMC)left the Federal Funds Rate unchanged at the range of 4.25 -4.50%at the June meeting.Fed Chair Powell continued to emphasize the Committee’s “wait and see”approach amidst economic uncertainty that remains elevated but diminished. Federal Reserve officials continued to pencil in two rate cuts in 2025. US Treasury yields declined in June. The 2-year Treasury yield fell 18 basis points to 3.72%,the 5-year Treasury dropped 17 basis points to 3.80%,and the 10-year Treasury yield also declined 17 basis points to 4.23%.The spread between the 2-year and 10-year Treasury yield points on the curve edged up to +51 basis points at June month-end versus +50 basis points at May month-end. The spread between the 2- year Treasury and 10-year Treasury yield one year ago was -36 basis points. The spread between the 3-month and 10-year Treasury yield points on the curve was -7 basis points in June, versus -6 basis points in May. ECONOMIC UPDATE 3 78 -400 -200 0 200 400 600 800 1,000 MO M C h a n g e I n T h o u s a n d s ( 0 0 0 ' s ) Nonfarm Payroll (000's) Non-farm Payroll (000's) 3-month average (000's) 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% Unemployment Rate Underemployment Rate (U6) Unemployment Rate (U3) Ra t e ( % ) The U.S.economy added 147,000 jobs in June,exceeding consensus expectations, and the last two months were revised up by 16,000. Gains were primarily driven by state and local government education,while job growth in service sectors languished. The three-month moving average and six-month moving average payrolls totaled 150,000 and 130,000 respectively.The unemployment rate declined to 4.1%in June from 4.2%in May,due to a shrinking labor force.The labor participation rate dipped to 62.3%,remaining below the pre- pandemic level of 63.3%.The U-6 underemployment rate,which includes those who are marginally attached to the labor force and employed part time for economic reasons dropped to 7.7%in June.Average hourly earnings fell slightly, marking a 3.7%year-over-year increase. Source: US Department of Labor Source: US Department of Labor EMPLOYMENT 4 79 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 Job Openings Recession Historical Average In T h o u s a n d s ( 0 0 0 ' s ) The Labor Department’s Job Openings and Labor Turnover Survey (JOLTS)unexpectedly rose to 7.77 million new job openings in May from 7.40 million in April.Layoffs declined and the quits rate increased.Job openings indicate a ratio of approximately 1.1 jobs for each unemployed individual, representing a relatively balanced labor market. Source: US Department of Labor JOB OPENINGS & LABOR TURNOVER SURVEY 5 80 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% Consumer Price Index (CPI) CPI YOY % Change Core CPI YOY % Change YO Y ( % ) C h a n g e 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% Personal Consumption Expenditures (PCE) PCE Price Deflator YOY % Change PCE Core Deflator YOY % Change Fed Target YO Y ( % ) C h a n g e In June, the Consumer Price Index (CPI)increased 0.3%month-over-month and rose 2.7%year-over-year,while the Core CPI rose 0.2% month-over-month and 2.9%year-over-year.The Personal Consumption Expenditures (PCE)price index increased 0.1%month-over-month and rose 2.3%year-over-year in May.The Core PCE deflator,which excludes food and energy and is the Fed’s preferred gauge,increased 0.2%month-over-month and 2.7%year-over-year,up from April’s 2.6%year-over-year increase.Although inflation has trended toward the Federal Reserve’s 2% target, the overall impact of tariff policy has not yet fully flowed through to the US economy. Source: US Department of Labor Source: US Department of Commerce INFLATION 6 81 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% Retail Sales YOY % Change YO Y ( % ) C h a n g e Advance Retail Sales were up 0.6%month-over-month in June, rebounding from a 0.9%decline in May and exceeding consensus forecasts.Auto sales led the increase.Control group sales,which feed into GDP,increased by 0.5%.On a year-over-year basis, Retail Sales grew 3.9%in June,following a 3.3%increase in May.The Conference Board’s Consumer Confidence Index dropped to 93.0 in June from 98.4 in May,as consumers’assessment of both the current situation and future expectations for income and labor markets soured. While the consumer has been resilient,elevated inflation expectations, concerns about trade policies and tariffs,and general economic and policy uncertainty could pose potential risks to future spending. 0 20 40 60 80 100 120 140 160 In d e x L e v e l Consumer Confidence Recession Source: US Department of Commerce Source: The Conference Board All time high is 144.70 (1/31/00); All time low is 25.30 (2/28/09) CONSUMER 7 82 -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% Leading Economic Indicators (LEI) Recession YO Y (% ) C h a n g e -1.00 -0.75 -0.50 -0.25 0.00 0.25 0.50 0.75 1.00 Chicago Fed National Activity Index (CFNAI) Recession 3 M o n t h A v e r a g e The Conference Board’s Leading Economic Index (LEI)fell by 0.3%in June,following a flat reading in May.The LEI decreased by 4.0%year- over-year.The Conference Board is expecting economic growth to slow substantially in 2025 due to consumer pessimism,persistently soft manufacturing new orders,and rising first-time jobless claims.The Chicago Fed National Activity Index (CFNAI)improved to -0.28 in May from a downwardly revised -0.36 in April.The three-month moving average dropped to -0.16 in May from 0.06 in April, indicating slightly below trend growth. Source: The Conference Board Source: Federal Reserve Bank of Chicago LEADING INDICATORS OF ECONOMIC ACTIVITY 8 83 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 In T h o u s a n d s o f U n i t s Annualized Housing Starts Multi Family Housing Starts Single Family Housing Starts Housing starts increased 4.6%month-over-month in June to a seasonally adjusted annual rate of 1.321 million units.Multi-family starts drove the gain, while single-family starts fell on weak buyer demand. The Freddie Mac 30-year fixed rate mortgage averaged approximately 6.8%in June. According to the Case-Shiller 20-City Home Price Index, housing prices rose 3.4%year-over-year in April, compared to 4.1%in March.Limited inventory,elevated mortgage rates,and lack of affordability continue to weigh on the housing market. Source: US Department of Commerce Source: S&P -20.0% -16.0% -12.0% -8.0% -4.0% 0.0% 4.0% 8.0% 12.0% 16.0% 20.0% 24.0% S&P/Case-Shiller 20 City Composite Home Price Index Recession YO Y ( % ) C h a n g e HOUSING 9 84 40 45 50 55 60 65 70 Institute of Supply Management (ISM) Surveys ISM Manufacturing ISM Services EXPANDING CONTRACTING The Institute for Supply Management (ISM)Manufacturing index edged up to 49.0 in June from 48.5 in May,indicating a continuation of modest contraction in the sector.Inventories and production improved as companies worked through backlogs, while employment and new orders contracted. The ISM Services index increased to 50.8 in June from 49.9 in May,as new orders improved.However,ongoing concerns about the impact of tariffs remain. A reading over 50 indicates expansion, while a reading under 50 indicates contraction. Source: Institute for Supply Management SURVEY BASED MEASURES 10 85 Components of GDP 6/24 9/24 12/24 3/25 1.9% 2.5% 2.7% 0.3% 1.5% 0.2% -1.0% 3.9% -0.9% -0.4% 0.3% -4.6% 0.3% 0.6% 0.3% -0.3% 0.3% 0.3% 0.3% 0.2% 3.0% 3.1% 2.5% -0.5% State and Local (Consumption and Gross Investment) Personal Consumption Expenditures Gross Private Domestic Investment Net Exports and Imports Federal Government Expenditures Total -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% Gross Domestic Product (GDP) GDP QOQ % Change GDP YOY % Change Source: US Department of Commerce Source: US Department of Commerce Real GDP decreased at an annualized rate of 0.5%in the first quarter of 2025,according to the third and final estimate from the Bureau of Economic Analysis,a downward revision from the previously estimated 0.2%decline. This marks the first negative quarter since 2022. The primary driver of the downward revision was weaker personal consumption expenditures.Net exports remained the primary drag on growth,as imports rose sharply in anticipation of higher tariffs.Gross investment contributed positively,powered by business decisions to get ahead of possible cost increases.The consensus projection calls for 2.1%growth for the second quarter and 1.5%for the full year 2025. GROSS DOMESTIC PRODUCT (GDP) 11 86 Source: Federal Reserve Source: Bloomberg 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 10,000,000 Federal Reserve Balance Sheet Assets Recession In $ m i l l i o n s As broadly anticipated,the Federal Open Market Committee (FOMC)left the Federal Funds Rate unchanged at the range of 4.25 -4.50% at the June meeting.In the Summary of Economic Projections (SEP),Federal Reserve officials continued to pencil in two rate cuts in 2025, while downgrading estimates for economic growth and raising forecasts for both unemployment and inflation this year.The statement indicated that uncertainty about the economic outlook remained elevated but had diminished. The monthly redemption cap on Treasuries will remain at $5 billion, while the cap on agencies and mortgage-backed securities will be maintained at $35 billion.Since the Fed began its Quantitative Tightening campaign in June 2022,securities holdings have declined by about $2.2 trillion to approximately $6.7 trillion. FEDERAL RESERVE 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Recession 12 87 Source: Bloomberg Source: Bloomberg 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% US Treasury Note Yields 2-Year 5-Year 10-Year Yi e l d ( % ) 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% US Treasury Yield Curve Jun-25 Mar-25 Jun-24 Yi e l d ( % ) At the end of June, the 2-year Treasury yield was 103 basis points lower,and the 10-Year Treasury yield was 17 basis points lower,year- over-year.The spread between the 2-year and 10-year Treasury yield points on the curve edged up to +51 basis points at June month-end versus +50 basis points at May month-end. The recent yield curve inversion which began in July 2022 was historically long.The average historical spread (since 2005)is about +99 basis points. The spread between the 3-month and 10-year Treasury yield points on the curve was -7 basis points in June, versus -6 basis points in May. BOND YIELDS 13 88 ACCOUNT PROFILE 14 89 OBJECTIVES City of Cupertino | As of June 30, 2025 Investment Objectives The City of Cupertino's investment objectives, in order of priority, are to provide safety to ensure the preservation of capital in the overall portfolio, provide sufficient liquidity for cash needs and a market rate of return consistent with the investment program. Chandler Asset Management Performance Objective The performance objective for the portfolio is to earn a total rate of return through a market cycle that is equal to or above the return on the benchmark index. Strategy In order to achieve these objectives, the portfolio invests in high quality fixed incomes securities consistent with the investment policy and California Government Code. 15 90 STATEMENT OF COMPLIANCE City of Cupertino | Account #10659 | As of June 30, 2025 Rules Name Limit Actual Compliance Status Notes AGENCY MORTGAGE SECURITIES (CMOS) Max % (MV)100.0 11.8 Compliant Max % Issuer (MV; Agencies & Agency CMOs)25.0 3.0 Compliant Max Maturity (Years)5.0 4.6 Compliant ASSET-BACKED SECURITIES (ABS) Max % (MV; Non Agency ABS & MBS)20.0 8.1 Compliant Max % Issuer (MV)5.0 1.0 Compliant Max Maturity (Years)5 4 Compliant Min Rating (AA- by 1)0.0 0.0 Compliant BANKERS' ACCEPTANCES Max % (MV)40.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant Max Maturity (Days)180 0.0 Compliant Min Rating (A-1 by 1 or A- by 1)0.0 0.0 Compliant CERTIFICATE OF DEPOSIT PLACEMENT SERVICE (CDARS) Max % (MV)30.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant Max Maturity (Years)5.0 0.0 Compliant COLLATERALIZED TIME DEPOSITS (NON- NEGOTIABLE CD/TD) Max % (MV; FDIC & Collateralized CD)30.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant Max Maturity (Years)5.0 0.0 Compliant COMMERCIAL PAPER Max % (MV)25.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant Max Maturity (Days)270 0.0 Compliant Min Rating (A-1 by 1 or A- by 1)0.0 0.0 Compliant CORPORATE MEDIUM TERM NOTES 16 91 STATEMENT OF COMPLIANCE City of Cupertino | Account #10659 | As of June 30, 2025 Rules Name Limit Actual Compliance Status Notes Max % (MV)30.0 26.4 Compliant Max % Issuer (MV)5.0 1.7 Compliant Max Maturity (Years)5 4 Compliant Min Rating (A- by 1)0.0 0.0 Compliant FDIC INSURED TIME DEPOSITS (NON-NEGOTIABLE CD/TD) Max % (MV; FDIC & Collateralized CD)30.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant Max Maturity (Years)5 0.0 Compliant FEDERAL AGENCIES Max % (MV)100.0 5.9 Compliant Max % Issuer (MV; Agencies & Agency CMOs)25.0 3.0 Compliant Max Callables (MV)20.0 0.0 Compliant Max Maturity (Years)5 2 Compliant LOCAL AGENCY INVESTMENT FUND (LAIF) Max Concentration (MV)75.0 0.0 Compliant MONEY MARKET MUTUAL FUNDS Max % (MV)20.0 0.5 Compliant Min Rating (AAA by 2)0.0 0.0 Compliant MORTGAGE-BACKED SECURITIES (NON-AGENCY) Max % (MV)20.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant Max Maturity (Years)5.0 0.0 Compliant Min Rating (AA- by 1)0.0 0.0 Compliant MUNICIPAL SECURITIES (CA, LOCAL AGENCY) Max % (MV)30.0 1.0 Compliant Max % Issuer (MV)5.0 1.0 Compliant Max Maturity (Years)5 4 Compliant Min Rating (A- by 1)0.0 0.0 Compliant MUNICIPAL SECURITIES (CA, OTHER STATES) 17 92 STATEMENT OF COMPLIANCE City of Cupertino | Account #10659 | As of June 30, 2025 Rules Name Limit Actual Compliance Status Notes Max % (MV)30.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant Max Maturity (Years)5 0.0 Compliant Min Rating (A- by 1)0.0 0.0 Compliant NEGOTIABLE CERTIFICATES OF DEPOSIT (NCD) Max % (MV)30.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant Max Maturity (Years)5 0.0 Compliant Min Rating (A-1 by 1 or A- by 1 if > FDIC Limit)0.0 0.0 Compliant REPURCHASE AGREEMENTS Max % (MV)10.0 0.0 Compliant Max % Issuer (MV)5.0 0.0 Compliant Max Maturity (Years)1.0 0.0 Compliant SUPRANATIONAL OBLIGATIONS Max % (MV)30.0 4.7 Compliant Max % Issuer (MV)10.0 3.4 Compliant Max Maturity (Years)5 4 Compliant Min Rating (AA- by 1)0.0 0.0 Compliant U.S. TREASURIES Max % (MV)100.0 41.6 Compliant Max Maturity (Years)5 4 Compliant 18 93 PORTFOLIO SUMMARY Sector Allocation Review Total Rate of Return**1M 3M YTD 1YR 2YRS 3YRS 5YRS 10YRS Since Inception (02/01/19) City of Cupertino 0.80%1.53%3.58%6.20%5.53%3.78%1.34%--2.21% Benchmark Return 0.74%1.36%3.39%5.54%5.03%3.28%0.95%--1.96% City of Cupertino | Account #10659 | As of June 30, 2025 Portfolio Characteristics Account Summary Maturity Distribution Top Issuers Credit Quality Average Modified Duration 2.54 Average Coupon 3.47% Average Purchase YTM 3.73% Average Market YTM 4.03% Average Credit Quality*AA+ Average Final Maturity 2.98 Average Life 2.62 End Values as of 03/31/2025 End Values as of 06/30/2025 Market Value 171,361,909.10 173,784,957.99 Accrued Interest 1,079,026.09 1,267,966.53 Total Market Value 172,440,935.19 175,052,924.52 Income Earned 1,469,440.75 1,570,445.77 Cont/WD 0.00 0.00 Par 173,051,310.32 174,552,255.38 Book Value 171,853,033.61 173,154,444.93 Cost Value 171,577,356.86 172,701,432.17 Government of The United States 41.62% FHLMC 11.78% International Bank for Recon and Dev 3.36% Farm Credit System 3.04% UnitedHealth Group Incorporated 1.67% Toyota Motor Corporation 1.62% The Home Depot, Inc.1.50% FNMA 1.42% **Periods over 1 year are annualized. Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index Secondary Benchmark:19 94 PORTFOLIO CHARACTERISTICS City of Cupertino | Account #10659 | As of June 30, 2025 Benchmark*6/30/2025 Portfolio 3/31/2025 Portfolio Average Maturity (yrs)2.65 2.98 2.97 Average Modified Duration 2.48 2.54 2.56 Average Purchase Yield 3.73%3.59% Average Market Yield 3.78%4.03%4.18% Average Quality**AA+AA+AA+ Total Market Value 175,052,925 172,440,935 *Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index **The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 20 95 SECTOR DISTRIBUTION City of Cupertino | Account #10659 | As of June 30, 2025 Sector as a Percentage of Market Value Sector 06/30/2025 03/31/2025 US Treasury 41.62%40.45% Corporate 26.43%27.47% Agency CMBS 11.78%11.05% ABS 8.06%7.80% Agency 5.90%7.05% Supras 4.74%4.77% Muni Bonds 1.02%1.03% Money Mkt Fd 0.45%0.38% 21 96 DURATION ALLOCATION City of Cupertino | Account #10659 | As of June 30, 2025 0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+ 06/30/2025 1.6%5.8%9.5%19.6%16.9%35.0%11.6%0.0%0.0% 22 97 ISSUERS City of Cupertino | Account #10659 | As of June 30, 2025 Issuer Investment Type % Portfolio Government of The United States US Treasury 41.62% FHLMC Agency CMBS 11.78% International Bank for Recon and Dev Supras 3.36% Farm Credit System Agency 3.04% UnitedHealth Group Incorporated Corporate 1.67% Toyota Motor Corporation Corporate 1.62% The Home Depot, Inc.Corporate 1.50% FNMA Agency 1.42% New York Life Insurance Company Corporate 1.38% Inter-American Development Bank Supras 1.38% Caterpillar Inc.Corporate 1.29% Royal Bank of Canada Corporate 1.18% Massachusetts Mutual Life Insurance Corporate 1.14% Morgan Stanley Corporate 1.14% Federal Home Loan Banks Agency 1.10% Amazon.com, Inc.Corporate 1.05% Chubb Limited Corporate 1.02% State of California Muni Bonds 1.02% Honda Motor Co., Ltd.Corporate 1.00% Chase Issuance Trust ABS 0.98% Bank of America Credit Card Trust ABS 0.95% Berkshire Hathaway Inc.Corporate 0.91% PepsiCo, Inc.Corporate 0.88% Prologis, Inc.Corporate 0.87% Bank of America Corporation Corporate 0.86% JPMorgan Chase & Co.Corporate 0.86% The Progressive Corporation Corporate 0.86% Deere & Company Corporate 0.84% Realty Income Corporation Corporate 0.83% American Express Credit Master Trust ABS 0.82% 23 98 ISSUERS City of Cupertino | Account #10659 | As of June 30, 2025 Issuer Investment Type % Portfolio Marsh & McLennan Companies, Inc.Corporate 0.81% GM Financial Securitized Term ABS 0.81% Honda Auto Receivables Owner Trust ABS 0.81% WF Card Issuance Trust ABS 0.79% Toyota Auto Receivables Owner Trust ABS 0.73% John Deere Owner Trust ABS 0.70% Guardian Life Global Funding Corporate 0.69% Mercedes-Benz Auto Receivables Trust ABS 0.64% Metropolitan Life Global Funding I Corporate 0.62% National Rural Utilities Cooperative Corporate 0.59% Northwestern Mutual Global Funding Corporate 0.58% Mastercard Incorporated Corporate 0.56% The Charles Schwab Corporation Corporate 0.54% Meta Platforms, Inc.Corporate 0.53% BMW Vehicle Owner Trust ABS 0.43% Met Tower Global Funding Corporate 0.43% Wells Fargo & Company Money Mkt Fd 0.42% Hyundai Auto Lease Securitization Tr ABS 0.35% Federal Home Loan Mortgage Corp Agency 0.34% Walmart Inc.Corporate 0.19% Hyundai Auto Receivables Trust ABS 0.04% WC MMF Sweep Money Mkt Fd 0.03% Cash Cash 0.00% TOTAL 100.00% 24 99 QUALITY DISTRIBUTION Rating 06/30/2025 03/31/2025 AAA 13.3%12.8% AA 65.2%64.5% A 18.4%19.4% NA 3.0%3.3% Rating 06/30/2025 03/31/2025 AAA 10.52%69.30% AA 66.43%7.27% A 18.37%19.38% NA 4.68%4.05% Rating 06/30/2025 03/31/2025 AAA 15.47%14.25% AA 61.31%62.00% A 11.68%12.12% NA 11.54%11.62% City of Cupertino | Account #10659 | As of June 30, 2025 S&P Rating Moody’s Rating Fitch Rating 25 100 0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+ Portfolio 1.6%5.8%9.5%19.6%16.9%35.0%11.6%0.0%0.0% ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index 0.0%0.1%2.6%34.9%27.8%23.4%11.1%0.0%0.0% DURATION DISTRIBUTION City of Cupertino | Account #10659 | As of June 30, 2025 Portfolio Compared to the Benchmark 26 101 3 Months 12 Months 2 Years 3 Years 5 Years 10 Years Since Inception TOTAL RATE OF RETURN City of Cupertino Gross of Fees 1.53%6.20%5.53%3.78%1.34%2.21% City of Cupertino Net of Fees 1.51%6.12%5.47%3.72%1.27%2.14% Benchmark 1.36%5.54%5.03%3.28%0.95%1.96% *Periods over 1 year are annualized. Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index Total rate of return: A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending market value; it includes interest earnings, realized and unrealized gains and losses in the portfolio. Realized rate of return: A measure of a portfolio’s return over time. It is the internal rate which equates the beginning book value of the portfolio with the ending book value; it includes interest earnings, realized gains and losses in the portfolio. INVESTMENT PERFORMANCE City of Cupertino | Account #10659 | As of June 30, 2025 Total and Realized Rate of Return : Inception | 02/01/2019 27 102 HISTORICAL AVERAGE PURCHASE YIELD City of Cupertino | Account #10659 | As of June 30, 2025 Purchase Yield as of 06/30/25 = 3.73% 28 103 PORTFOLIO CHARACTERISTICS City of Cupertino Reporting | Account #10663 | As of June 30, 2025 6/30/2025 Portfolio 3/31/2025 Portfolio Average Maturity (yrs)0.00 0.00 Average Modified Duration 0.00 0.00 Average Purchase Yield 2.43%2.59% Average Market Yield 2.41%2.57% Average Quality**AAA AAA Total Market Value 120,488,632 112,885,409 *Benchmark: NO BENCHMARK REQUIRED **The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 29 104 SECTOR DISTRIBUTION City of Cupertino Reporting | Account #10663 | As of June 30, 2025 Sector as a Percentage of Market Value Sector 06/30/2025 03/31/2025 LAIF 56.48%59.63% Cash 43.52%40.37% 30 105 CONSOLIDATED INFORMATION 31 106 PORTFOLIO CHARACTERISTICS City of Cupertino Cons | Account #10664 | As of June 30, 2025 6/30/2025 Portfolio 3/31/2025 Portfolio Average Maturity (yrs)1.76 1.79 Average Modified Duration 1.50 1.54 Average Purchase Yield 3.20%3.19% Average Market Yield 3.37%3.54% Average Quality**AA+AA+ Total Market Value 295,541,556 285,326,344 *Benchmark: NO BENCHMARK REQUIRED **The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 32 107 SECTOR DISTRIBUTION City of Cupertino Cons | Account #10664 | As of June 30, 2025 Sector as a Percentage of Market Value Sector 06/30/2025 03/31/2025 US Treasury 24.58%24.39% LAIF 23.13%23.68% Cash 17.82%16.03% Corporate 15.61%16.56% Agency CMBS 6.96%6.66% ABS 4.76%4.70% Agency 3.49%4.25% Supras 2.80%2.87% Muni Bonds 0.60%0.62% Money Mkt Fd 0.27%0.23% 33 108 PORTFOLIO HOLDINGS 34 109 HOLDINGS REPORT City of Cupertino | Account #10659 | As of June 30, 2025 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration ABS 43815BAC4 HAROT 2022-1 A3 1.88 05/15/2026 45,267.43 02/15/2022 1.89% 45,260.62 45,266.13 99.80 4.77% 45,175.75 37.82 0.03% (90.39) Aaa/AAA NA 0.87 0.07 05602RAD3 BMWOT 2022-A A3 3.21 08/25/2026 46,253.11 05/10/2022 3.23% 46,250.71 46,252.51 99.82 4.56% 46,169.60 24.75 0.03% (82.91) Aaa/AAA NA 1.15 0.14 47787JAC2 JDOT 2022 A3 2.32 09/15/2026 46,593.40 03/10/2022 2.34% 46,583.09 46,590.80 99.72 4.16% 46,460.88 48.04 0.03% (129.92) Aaa/NA AAA 1.21 0.15 362554AC1 GMCAR 2021-4 A3 0.68 09/16/2026 882.14 10/13/2021 0.68% 882.12 882.13 99.84 4.51% 880.75 0.25 0.00% (1.39) Aaa/AAA NA 1.21 0.04 448977AD0 HART 2022-A A3 2.22 10/15/2026 65,901.31 03/09/2022 2.23% 65,898.78 65,900.66 99.83 4.49% 65,791.40 65.02 0.04% (109.26) NA/AAA AAA 1.29 0.07 380146AC4 GMCAR 2022-1 A3 1.26 11/16/2026 9,082.94 01/11/2022 1.27% 9,082.15 9,082.74 99.86 4.72% 9,070.06 4.77 0.01% (12.68) NA/AAA AAA 1.38 0.04 47800AAC4 JDOT 2022-B A3 3.74 02/16/2027 192,472.55 07/12/2022 3.77% 192,454.17 192,466.21 99.68 4.66% 191,849.50 319.93 0.11% (616.71) Aaa/NA AAA 1.63 0.36 362585AC5 GMCAR 2022-2 A3 3.1 02/16/2027 78,678.25 04/05/2022 3.13% 78,661.81 78,673.12 99.65 4.83% 78,406.51 101.63 0.05% (266.61) Aaa/AAA NA 1.63 0.20 44934FAD7 HALST 2024-B A3 5.41 05/17/2027 610,000.00 05/14/2024 5.41% 609,983.04 609,989.34 100.79 4.55% 614,844.25 1,466.71 0.35% 4,854.91 NA/AAA AAA 1.88 0.86 47800BAC2 JDOT 2022-C A3 5.09 06/15/2027 469,547.23 10/12/2022 5.15% 469,510.79 469,532.11 100.27 4.59% 470,807.07 1,062.22 0.27% 1,274.95 Aaa/NA AAA 1.96 0.48 89231FAD2 TAOT 2023-C A3 5.16 04/17/2028 1,266,273.20 11/21/2023 5.65% 1,261,128.97 1,263,002.80 100.54 4.42% 1,273,120.45 2,903.99 0.73% 10,117.65 NA/AAA AAA 2.80 0.67 438123AC5 HAROT 2023-4 A3 5.67 06/21/2028 805,000.00 -- 5.64% 806,992.67 806,143.47 101.07 4.39% 813,585.33 1,267.88 0.47% 7,441.85 Aaa/NA AAA 2.98 0.78 58769FAC9 MBART 2023-2 A3 5.95 11/15/2028 1,100,000.00 11/29/2023 3.88% 1,123,289.06 1,114,068.85 101.30 4.30% 1,114,288.01 2,908.89 0.64% 219.16 NA/AAA AAA 3.38 0.75 05522RDH8 BACCT 2023-2 A 4.98 11/16/2026 850,000.00 01/24/2024 4.58% 858,798.83 854,317.59 101.06 4.22% 858,991.22 1,881.33 0.49% 4,673.62 Aaa/NA AAA 1.38 1.30 47800RAD5 JDOT 2024 A3 4.96 11/15/2028 500,000.00 03/25/2024 5.13% 499,765.63 499,829.41 100.92 4.29% 504,618.80 1,102.22 0.29% 4,789.39 Aaa/NA AAA 3.38 1.27 437930AC4 HAROT 2024-2 A3 5.27 11/20/2028 535,000.00 05/14/2024 5.27% 534,935.00 534,951.05 101.20 4.30% 541,394.64 1,018.13 0.31% 6,443.59 NA/AAA AAA 3.39 1.16 35 110 HOLDINGS REPORT City of Cupertino | Account #10659 | As of June 30, 2025 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration 36268GAD7 GMCAR 2024-1 A3 4.85 12/18/2028 1,310,000.00 -- 4.97% 1,307,922.66 1,308,455.50 100.50 4.32% 1,316,546.20 2,647.29 0.76% 8,090.70 Aaa/NA AAA 3.47 0.85 161571HV9 CHAIT 241 A 4.6 01/16/2029 1,690,000.00 01/24/2024 4.61% 1,689,742.61 1,689,816.05 100.73 4.14% 1,702,377.22 3,455.11 0.98% 12,561.17 NA/AAA AAA 3.55 1.46 096919AD7 BMWOT 2024-A A3 5.18 02/26/2029 695,000.00 06/04/2024 5.18% 694,894.43 694,918.05 101.26 4.11% 703,762.56 600.02 0.40% 8,844.51 Aaa/AAA NA 3.66 1.12 05522RDJ4 BACCT 2024-1 A 4.93 05/15/2029 785,000.00 06/06/2024 4.93% 784,955.96 784,965.47 101.48 4.14% 796,628.28 1,720.02 0.46% 11,662.81 Aaa/AAA NA 3.87 1.75 02582JKP4 AMXCA 2025-2 A 4.28 04/15/2030 1,420,000.00 05/06/2025 4.28% 1,419,974.30 1,419,975.00 100.61 4.08% 1,428,685.71 2,701.16 0.82% 8,710.71 NA/AAA AAA 4.79 2.58 92970QAJ4 WFCIT 2025-1 A 4.34 05/15/2030 1,365,000.00 06/03/2025 4.33% 1,364,977.34 1,364,977.60 100.78 4.09% 1,375,690.41 3,455.73 0.79% 10,712.80 NA/AAA AAA 4.87 2.65 13,911,944.72 100.82 13,999,144.59 8.06%3.36 Total ABS 13,885,951.56 4.77%13,900,056.61 4.26%28,792.91 99,087.98 1.33 AGENCY 3137EAEX3 FEDERAL HOME LOAN MORTGAGE CORP 0.375 09/23/2025 600,000.00 -- 0.46% 597,447.07 599,879.97 99.09 4.41% 594,533.15 612.50 0.34% (5,346.82) Aa1/AA+ AA+ 0.23 0.23 3135G06G3 FEDERAL NATIONAL MORTGAGE ASSOCIATION 0.5 11/07/2025 2,500,000.00 -- 0.56% 2,492,700.00 2,499,482.72 98.68 4.32% 2,467,003.68 1,875.00 1.42% (32,479.04) Aa1/AA+ AA+ 0.36 0.34 3130B0TY5 FEDERAL HOME LOAN BANKS 4.75 04/09/2027 1,875,000.00 04/10/2024 4.85% 1,870,050.00 1,872,069.85 101.70 3.75% 1,906,833.28 20,286.46 1.10% 34,763.43 Aa1/AA+ AA+ 1.77 1.67 3133ERDS7 FEDERAL FARM CREDIT BANKS FUNDING CORP 4.75 05/06/2027 2,400,000.00 06/20/2024 4.55% 2,412,552.00 2,408,064.87 101.70 3.79% 2,440,710.94 17,416.67 1.40% 32,646.07 Aa1/AA+ AA+ 1.85 1.75 3133EPC60 FEDERAL FARM CREDIT BANKS FUNDING CORP 4.625 11/15/2027 2,800,000.00 11/09/2023 4.73% 2,789,612.00 2,793,835.46 101.74 3.85% 2,848,663.66 16,547.22 1.64% 54,828.21 Aa1/AA+ AA+ 2.38 2.22 10,162,361.07 100.83 10,257,744.70 5.90%1.53 Total Agency 10,175,000.00 3.46%10,173,332.87 3.96%56,737.85 84,411.84 1.44 AGENCY CMBS 3137BSP72 FHMS K-058 A2 2.653 08/25/2026 650,000.00 11/12/2021 1.36% 687,451.17 658,632.52 98.16 4.23% 638,009.19 1,437.04 0.37% (20,623.33) Aa1/AA+ AAA 1.15 1.07 36 111 HOLDINGS REPORT City of Cupertino | Account #10659 | As of June 30, 2025 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration 3137FBBX3 FHMS K-068 A2 3.244 08/25/2027 1,000,000.00 09/28/2022 4.36% 950,664.06 978,704.11 98.27 4.04% 982,744.00 2,703.33 0.57% 4,039.89 Aaa/AA+ AA+ 2.15 1.98 3137FKUP9 FHMS K-087 A2 3.771 12/25/2028 2,000,000.00 07/01/2024 4.86% 1,913,359.38 1,932,786.25 99.12 4.01% 1,982,438.40 6,285.00 1.14% 49,652.15 Aa1/AAA AA+ 3.49 3.04 3137FL6P4 FHMS K-089 A2 3.563 01/25/2029 1,288,000.00 07/03/2024 4.70% 1,228,178.44 1,241,224.44 98.34 4.03% 1,266,556.47 3,824.29 0.73% 25,332.04 Aa1/AA+ AA+ 3.57 3.26 3137H5YC5 FHMS K-748 A2 2.26 01/25/2029 2,000,000.00 07/03/2024 4.74% 1,801,718.75 1,844,960.29 94.13 4.06% 1,882,569.40 3,766.67 1.08% 37,609.11 Aa1/AA+ AAA 3.57 3.28 3137FKZZ2 FHMS K-088 A2 3.69 01/25/2029 2,550,000.00 07/17/2024 4.50% 2,465,830.08 2,483,659.18 98.76 4.03% 2,518,407.03 7,841.25 1.45% 34,747.85 Aaa/AA+ AA+ 3.57 3.21 3137FLN91 FHMS K-091 A2 3.505 03/25/2029 2,500,000.00 03/20/2025 4.25% 2,431,738.28 2,436,393.57 98.06 4.05% 2,451,509.00 7,302.08 1.41% 15,115.43 Aa1/AAA AA+ 3.73 3.34 3137FMCR1 FHMS K-093 A2 2.982 05/25/2029 1,985,462.82 09/19/2024 3.82% 1,915,506.28 1,927,165.70 96.30 4.05% 1,912,066.61 4,933.88 1.10% (15,099.09) Aa1/AA+ AAA 3.90 3.40 3137FNAE0 FHMS K-095 A2 2.785 06/25/2029 2,200,000.00 07/17/2024 4.47% 2,039,382.82 2,070,802.03 95.37 4.06% 2,098,124.16 5,105.83 1.21% 27,322.13 Aa1/AA+ AAA 3.99 3.60 3137FPHK4 FHMS K-098 A2 2.425 08/25/2029 1,600,000.00 09/03/2024 4.00% 1,488,375.00 1,506,958.38 93.83 4.07% 1,501,262.56 3,233.33 0.86% (5,695.82) Aa1/AA+ AAA 4.15 3.78 3137FPJG1 FHMS K-099 A2 2.595 09/25/2029 1,500,000.00 06/05/2025 4.21% 1,407,011.72 1,408,276.46 94.30 4.09% 1,414,560.15 3,243.75 0.81% 6,283.69 Aa1/AA+ AAA 4.24 3.84 3137FRUT6 FHMS K-106 A2 2.069 01/25/2030 2,000,000.00 06/06/2025 4.37% 1,810,078.13 1,812,359.47 91.55 4.12% 1,831,017.80 3,448.33 1.05% 18,658.33 Aa1/AA+ AAA 4.57 4.24 20,139,294.11 96.33 20,479,264.78 11.78%3.69 Total Agency CMBS 21,273,462.82 4.30%20,301,922.40 4.06%53,124.79 177,342.38 3.33 CASH CCYUSD Receivable 130.32 --130.32 130.32 1.00 0.00% 130.32 0.00 0.00% 0.00 Aaa/AAA AAA 0.00 0.00 130.32 1.00 130.32 0.00%0.00 Total Cash 130.32 130.32 0.00%0.00 0.00 0.00 CORPORATE 37 112 HOLDINGS REPORT City of Cupertino | Account #10659 | As of June 30, 2025 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration 023135BX3 AMAZON.COM INC 1.0 05/12/2026 1,875,000.00 05/10/2021 1.09% 1,866,900.00 1,873,602.68 97.38 4.11% 1,825,920.45 2,552.08 1.05% (47,682.23) A1/AA AA- 0.87 0.84 91324PEC2 UNITEDHEALTH GROUP INC 1.15 05/15/2026 1,035,000.00 -- 1.37% 1,025,051.35 1,033,019.36 97.21 4.45% 1,006,078.45 1,520.88 0.58% (26,940.91) A2/A+ A 0.87 0.85 89236TJK2 TOYOTA MOTOR CREDIT CORP 1.125 06/18/2026 1,385,000.00 06/15/2021 1.13% 1,384,390.60 1,384,882.53 97.05 4.28% 1,344,191.94 562.66 0.77% (40,690.58) A1/A+ A+ 0.97 0.94 57629WDE7 MASSMUTUAL GLOBAL FUNDING II 1.2 07/16/2026 1,000,000.00 08/19/2021 1.15% 1,002,230.00 1,000,473.94 96.93 4.24% 969,302.24 5,500.00 0.56% (31,171.70) Aa3/AA+ AA+ 1.04 1.01 58989V2D5 MET TOWER GLOBAL FUNDING 1.25 09/14/2026 770,000.00 09/07/2021 1.27% 769,291.60 769,829.30 96.43 4.33% 742,477.10 2,860.76 0.43% (27,352.20) Aa3/AA- AA- 1.21 1.17 931142ER0 WALMART INC 1.05 09/17/2026 350,000.00 09/08/2021 1.09% 349,338.50 349,839.52 96.64 3.91% 338,256.41 1,061.67 0.19% (11,583.11) Aa2/AA AA 1.22 1.18 59217GER6 METROPOLITAN LIFE GLOBAL FUNDING I 1.875 01/11/2027 1,115,000.00 01/03/2022 1.90% 1,113,728.90 1,114,610.87 96.65 4.16% 1,077,643.21 9,872.40 0.62% (36,967.67) Aa3/AA- AA- 1.53 1.47 808513BY0 CHARLES SCHWAB CORP 2.45 03/03/2027 960,000.00 03/01/2022 2.46% 959,729.90 959,906.41 97.18 4.21% 932,950.67 7,709.33 0.54% (26,955.75) A2/A- A 1.67 1.60 084664CZ2 BERKSHIRE HATHAWAY FINANCE CORP 2.3 03/15/2027 1,615,000.00 03/07/2022 2.30% 1,614,693.15 1,614,895.48 97.49 3.83% 1,574,474.11 10,937.14 0.91% (40,421.37) Aa2/AA A+ 1.71 1.64 14913UAL4 CATERPILLAR FINANCIAL SERVICES CORP 5.0 05/14/2027 1,000,000.00 05/10/2024 5.04% 998,930.00 999,332.96 101.70 4.04% 1,017,024.22 6,527.78 0.59% 17,691.26 A2/A A+ 1.87 1.76 24422EXZ7 JOHN DEERE CAPITAL CORP 4.65 01/07/2028 1,430,000.00 01/06/2025 4.66% 1,429,571.00 1,429,638.90 101.51 4.01% 1,451,594.89 31,769.83 0.84% 21,955.99 A1/A A+ 2.52 2.31 57636QAW4 MASTERCARD INC 4.875 03/09/2028 945,000.00 03/06/2023 4.90% 944,083.35 944,507.31 102.26 3.98% 966,353.23 14,332.50 0.56% 21,845.92 Aa3/A+ NA 2.69 2.40 61690U8E3 MORGAN STANLEY BANK NA 4.968 07/14/2028 1,950,000.00 07/17/2024 4.97% 1,950,000.00 1,950,000.00 101.20 4.66% 1,973,358.39 44,939.70 1.14% 23,358.39 Aa3/A+ AA- 3.04 1.88 74340XBL4 PROLOGIS LP 4.375 02/01/2029 1,500,000.00 07/18/2024 4.68% 1,481,235.00 1,485,162.29 100.69 4.17% 1,510,280.49 27,343.75 0.87% 25,118.20 A2/A NA 3.59 3.02 78016HZV5 ROYAL BANK OF CANADA 4.95 02/01/2029 2,000,000.00 10/31/2024 4.69% 2,019,920.00 2,016,815.92 102.29 4.25% 2,045,811.40 41,250.00 1.18% 28,995.48 A1/A AA- 3.59 3.20 743315AV5 PROGRESSIVE CORP 4.0 03/01/2029 1,500,000.00 07/16/2024 4.72% 1,455,495.00 1,464,696.57 99.40 4.18% 1,490,925.45 20,000.00 0.86% 26,228.88 A2/A A 3.67 3.33 64952WFG3 NEW YORK LIFE GLOBAL FUNDING 5.0 06/06/2029 1,000,000.00 07/01/2024 5.12% 994,880.00 995,915.38 102.29 4.36% 1,022,880.96 3,472.22 0.59% 26,965.58 Aa1/AA+ AAA 3.93 3.53 38 113 HOLDINGS REPORT City of Cupertino | Account #10659 | As of June 30, 2025 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration 437076BY7 HOME DEPOT INC 2.95 06/15/2029 1,663,000.00 09/17/2024 3.93% 1,593,203.89 1,604,735.77 95.69 4.14% 1,591,375.14 2,180.38 0.92% (13,360.63) A2/A A 3.96 3.68 437076DC3 HOME DEPOT INC 4.75 06/25/2029 1,000,000.00 07/01/2024 4.93% 992,260.00 993,808.85 102.07 4.18% 1,020,732.62 791.67 0.59% 26,923.77 A2/A A 3.99 3.53 756109CB8 REALTY INCOME CORP 4.0 07/15/2029 1,463,000.00 08/08/2024 4.69% 1,419,212.41 1,427,138.43 98.73 4.35% 1,444,359.17 26,984.22 0.83% 17,220.75 A3/A- NA 4.04 3.62 713448FX1 PEPSICO INC 4.5 07/17/2029 1,500,000.00 07/15/2024 4.53% 1,497,675.00 1,498,119.37 101.59 4.07% 1,523,912.34 30,750.00 0.88% 25,792.97 A1/A+ NA 4.05 3.53 46647PAV8 JPMORGAN CHASE & CO 4.203 07/23/2029 1,500,000.00 09/17/2024 4.27% 1,496,610.00 1,497,300.56 99.58 4.69% 1,493,663.55 27,669.75 0.86% (3,637.01) A1/A AA- 4.06 2.79 06051GHM4 BANK OF AMERICA CORP 4.271 07/23/2029 1,500,000.00 09/17/2024 4.29% 1,498,710.00 1,498,972.78 99.67 4.73% 1,495,058.82 28,117.42 0.86% (3,913.96) A1/A- AA- 4.06 2.79 30303M8S4 META PLATFORMS INC 4.3 08/15/2029 912,000.00 08/12/2024 4.33% 910,584.09 910,832.22 100.91 4.06% 920,314.75 14,814.93 0.53% 9,482.53 Aa3/AA- NA 4.13 3.62 171239AL0 CHUBB INA HOLDINGS LLC 4.65 08/15/2029 1,750,000.00 -- 4.44% 1,765,746.34 1,763,253.10 101.70 4.19% 1,779,826.25 30,741.67 1.02% 16,573.15 A2/A A 4.13 3.59 91324PDS8 UNITEDHEALTH GROUP INC 2.875 08/15/2029 2,000,000.00 09/17/2024 3.94% 1,906,080.00 1,921,069.46 94.39 4.38% 1,887,713.62 21,722.22 1.09% (33,355.84) A2/A+ A 4.13 3.78 02665WFQ9 AMERICAN HONDA FINANCE CORP 4.4 09/05/2029 1,750,000.00 10/02/2024 4.29% 1,758,102.50 1,756,881.27 99.53 4.52% 1,741,752.20 24,811.11 1.00% (15,129.07) A3/A- NA 4.18 3.72 40139LBJ1 GUARDIAN LIFE GLOBAL FUNDING 4.179 09/26/2029 1,205,000.00 09/23/2024 4.18% 1,205,000.00 1,205,000.00 99.55 4.29% 1,199,605.13 13,288.64 0.69% (5,394.87) Aa1/AA+ NA 4.24 3.80 14913UAU4 CATERPILLAR FINANCIAL SERVICES CORP 4.7 11/15/2029 1,200,000.00 11/14/2024 4.74% 1,198,092.00 1,198,330.24 101.85 4.23% 1,222,143.07 7,206.67 0.70% 23,812.83 A2/A A+ 4.38 3.90 64952WFK4 NEW YORK LIFE GLOBAL FUNDING 4.6 12/05/2029 1,365,000.00 12/02/2024 4.61% 1,364,221.95 1,364,310.58 101.11 4.32% 1,380,218.51 4,534.83 0.79% 15,907.93 Aa1/AA+ AAA 4.43 3.96 89236TNA9 TOYOTA MOTOR CREDIT CORP 4.95 01/09/2030 1,445,000.00 01/06/2025 5.00% 1,441,907.70 1,442,200.67 102.26 4.39% 1,477,693.20 34,174.25 0.85% 35,492.52 A1/A+ A+ 4.53 3.93 63743HFX5 NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORP 4.95 02/07/2030 1,000,000.00 02/05/2025 4.88% 1,002,873.61 1,002,643.08 102.28 4.40% 1,022,838.47 19,800.00 0.59% 20,195.39 A2/NA A 4.61 3.94 571748CA8 MARSH & MCLENNAN COMPANIES INC 4.65 03/15/2030 1,400,000.00 03/11/2025 4.69% 1,397,340.00 1,397,494.58 101.13 4.38% 1,415,789.27 19,168.33 0.81% 18,294.69 A3/A- A- 4.71 4.07 39 114 HOLDINGS REPORT City of Cupertino | Account #10659 | As of June 30, 2025 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration 57629TBX4 MASSMUTUAL GLOBAL FUNDING II 4.55 05/07/2030 1,000,000.00 05/01/2025 4.58% 998,670.00 998,710.06 100.71 4.38% 1,007,139.17 6,825.00 0.58% 8,429.11 Aa3/AA+ AA+ 4.85 4.29 66815L2W8 NORTHWESTERN MUTUAL GLOBAL FUNDING 4.6 06/03/2030 1,000,000.00 06/12/2025 4.51% 1,004,040.00 1,003,999.96 101.05 4.36% 1,010,528.81 3,577.78 0.58% 6,528.85 Aa1/AA+ AAA 4.93 4.35 Total Corporate 46,083,000.00 3.93% 45,809,797.84 45,871,930.39 99.71 4.28% 45,924,187.68 549,371.56 26.43% 52,257.30 3.35 2.90 MONEY MARKET FUND 992995944 WC MMF SWEEP 52,202.85 -- 2.25% 52,202.85 52,202.85 1.00 2.25% 52,202.85 0.00 0.03% 0.00 NA/NA NA 0.00 0.00 VP4520004 WF ADV 100% TREAS MM FD-SVC CL #008 732,507.83 -- 3.81% 732,507.83 732,507.83 1.00 3.81% 732,507.83 0.00 0.42% 0.00 Aaa/AAAm NA 0.00 0.00 Total Money Market Fund 784,710.68 3.71% 784,710.68 784,710.68 1.00 3.71% 784,710.68 0.00 0.45% 0.00 0.00 0.00 MUNICIPAL BONDS 13063EGT7 CALIFORNIA STATE 4.5 08/01/2029 1,740,000.00 10/30/2024 4.38% 1,749,169.80 1,747,908.29 101.77 4.02% 1,770,876.30 32,625.00 1.02% 22,968.01 Aa2/AA- AA 4.09 3.64 Total Municipal Bonds 1,740,000.00 4.38% 1,749,169.80 1,747,908.29 101.77 4.02% 1,770,876.30 32,625.00 1.02% 22,968.01 4.09 3.64 SUPRANATIONAL 459058JL8 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPM 0.5 10/28/2025 2,400,000.00 -- 0.60% 2,388,859.25 2,399,227.79 98.74 4.43% 2,369,755.70 2,100.00 1.36% (29,472.09) Aaa/AAA NA 0.33 0.32 4581X0DV7 INTER-AMERICAN DEVELOPMENT BANK 0.875 04/20/2026 2,460,000.00 04/13/2021 0.97% 2,448,733.20 2,458,192.13 97.47 4.11% 2,397,693.34 4,245.21 1.38% (60,498.79) Aaa/AAA NA 0.80 0.78 459058LN1 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPM 3.875 10/16/2029 1,750,000.00 12/12/2024 4.25% 1,721,510.00 1,724,732.85 100.24 3.81% 1,754,113.52 14,127.60 1.01% 29,380.66 Aaa/AAA NA 4.30 3.89 40 115 HOLDINGS REPORT City of Cupertino | Account #10659 | As of June 30, 2025 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration 459058LR2 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPM 4.125 03/20/2030 1,700,000.00 03/14/2025 4.20% 1,694,220.00 1,694,546.04 101.23 3.84% 1,720,826.60 19,673.96 0.99% 26,280.56 Aaa/AAA NA 4.72 4.21 Total Supranational 8,310,000.00 2.24% 8,253,322.45 8,276,698.81 99.21 4.08% 8,242,389.16 40,146.77 4.74% (34,309.65) 2.23 2.03 US TREASURY 91282CAM3 UNITED STATES TREASURY 0.25 09/30/2025 1,200,000.00 -- 0.56% 1,183,070.32 1,199,077.96 99.00 4.31% 1,188,015.62 754.10 0.68% (11,062.34) Aa1/AA+ AA+ 0.25 0.25 91282CAT8 UNITED STATES TREASURY 0.25 10/31/2025 2,450,000.00 -- 0.49% 2,422,492.19 2,448,076.36 98.67 4.33% 2,417,293.46 1,031.93 1.39% (30,782.90) Aa1/AA+ AA+ 0.34 0.33 91282CAZ4 UNITED STATES TREASURY 0.375 11/30/2025 2,250,000.00 03/26/2021 0.76% 2,209,658.20 2,246,407.76 98.39 4.31% 2,213,854.99 714.65 1.27% (32,552.77) Aa1/AA+ AA+ 0.42 0.41 91282CBH3 UNITED STATES TREASURY 0.375 01/31/2026 2,500,000.00 05/27/2021 0.75% 2,456,445.31 2,494,546.11 97.80 4.24% 2,444,946.30 3,910.57 1.41% (49,599.81) Aa1/AA+ AA+ 0.59 0.57 91282CBW0 UNITED STATES TREASURY 0.75 04/30/2026 2,500,000.00 05/27/2021 0.80% 2,493,652.34 2,498,930.29 97.29 4.10% 2,432,250.98 3,158.97 1.40% (66,679.31) Aa1/AA+ AA+ 0.83 0.81 91282CCZ2 UNITED STATES TREASURY 0.875 09/30/2026 1,400,000.00 10/18/2021 1.19% 1,379,054.68 1,394,714.41 96.33 3.92% 1,348,593.75 3,079.24 0.78% (46,120.66) Aa1/AA+ AA+ 1.25 1.22 91282CDG3 UNITED STATES TREASURY 1.125 10/31/2026 1,400,000.00 11/15/2021 1.25% 1,391,468.75 1,397,703.31 96.43 3.90% 1,350,070.32 2,653.53 0.78% (47,632.99) Aa1/AA+ AA+ 1.34 1.30 91282CJP7 UNITED STATES TREASURY 4.375 12/15/2026 2,500,000.00 12/28/2023 4.01% 2,525,097.66 2,512,340.07 100.75 3.84% 2,518,652.35 4,781.42 1.45% 6,312.28 Aa1/AA+ AA+ 1.46 1.40 91282CKJ9 UNITED STATES TREASURY 4.5 04/15/2027 2,300,000.00 04/17/2024 4.77% 2,283,109.38 2,289,899.66 101.25 3.77% 2,328,660.16 21,774.59 1.34% 38,760.51 Aa1/AA+ AA+ 1.79 1.69 91282CKR1 UNITED STATES TREASURY 4.5 05/15/2027 3,200,000.00 05/08/2024 4.65% 3,186,500.00 3,191,579.45 101.32 3.76% 3,242,124.99 18,391.30 1.87% 50,545.54 Aa1/AA+ AA+ 1.87 1.77 91282CEW7 UNITED STATES TREASURY 3.25 06/30/2027 3,250,000.00 -- 3.18% 3,260,312.50 3,254,012.13 99.11 3.72% 3,220,927.74 287.02 1.85% (33,084.38) Aa1/AA+ AA+ 2.00 1.91 91282CFB2 UNITED STATES TREASURY 2.75 07/31/2027 400,000.00 08/22/2022 3.12% 393,218.75 397,141.57 98.05 3.73% 392,203.12 4,588.40 0.23% (4,938.44) Aa1/AA+ AA+ 2.08 1.98 91282CFH9 UNITED STATES TREASURY 3.125 08/31/2027 4,500,000.00 -- 3.28% 4,468,902.34 4,486,457.20 98.77 3.72% 4,444,628.90 47,002.38 2.56% (41,828.30) Aa1/AA+ AA+ 2.17 2.05 41 116 HOLDINGS REPORT City of Cupertino | Account #10659 | As of June 30, 2025 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration 91282CFM8 UNITED STATES TREASURY 4.125 09/30/2027 3,450,000.00 -- 4.31% 3,421,152.34 3,436,818.34 100.91 3.70% 3,481,400.38 35,772.54 2.00% 44,582.05 Aa1/AA+ AA+ 2.25 2.11 91282CFZ9 UNITED STATES TREASURY 3.875 11/30/2027 850,000.00 12/05/2022 3.81% 852,656.25 851,287.26 100.38 3.71% 853,253.90 2,789.79 0.49% 1,966.64 Aa1/AA+ AA+ 2.42 2.28 91282CGC9 UNITED STATES TREASURY 3.875 12/31/2027 2,750,000.00 -- 3.67% 2,775,107.42 2,762,749.25 100.42 3.70% 2,761,601.56 289.57 1.59% (1,147.69) Aa1/AA+ AA+ 2.50 2.36 91282CGH8 UNITED STATES TREASURY 3.5 01/31/2028 3,000,000.00 02/07/2023 3.81% 2,957,929.69 2,978,154.91 99.49 3.71% 2,984,765.64 43,798.34 1.72% 6,610.73 Aa1/AA+ AA+ 2.59 2.41 91282CGP0 UNITED STATES TREASURY 4.0 02/29/2028 3,700,000.00 -- 4.01% 3,699,113.28 3,699,598.42 100.76 3.70% 3,728,039.04 49,467.39 2.15% 28,440.63 Aa1/AA+ AA+ 2.67 2.48 91282CKG5 UNITED STATES TREASURY 4.125 03/31/2029 2,300,000.00 04/17/2024 4.62% 2,249,867.19 2,262,039.92 101.35 3.73% 2,331,085.93 23,848.36 1.34% 69,046.00 Aa1/AA+ AA+ 3.75 3.42 91282CKX8 UNITED STATES TREASURY 4.25 06/30/2029 2,000,000.00 07/01/2024 4.41% 1,985,546.88 1,988,431.16 101.86 3.74% 2,037,187.50 230.98 1.17% 48,756.34 Aa1/AA+ AA+ 4.00 3.65 91282CLK5 UNITED STATES TREASURY 3.625 08/31/2029 3,500,000.00 09/11/2024 3.45% 3,527,480.47 3,523,069.65 99.50 3.75% 3,482,636.71 42,406.59 2.00% (40,432.94) Aa1/AA+ AA+ 4.17 3.79 91282CLN9 UNITED STATES TREASURY 3.5 09/30/2029 5,000,000.00 -- 3.83% 4,925,039.06 4,935,849.11 98.99 3.76% 4,949,609.40 43,989.07 2.85% 13,760.29 Aa1/AA+ AA+ 4.25 3.88 91282CLR0 UNITED STATES TREASURY 4.125 10/31/2029 3,000,000.00 10/31/2024 4.17% 2,993,789.06 2,994,612.65 101.43 3.76% 3,042,890.64 20,849.18 1.75% 48,277.99 Aa1/AA+ AA+ 4.34 3.91 91282CMD0 UNITED STATES TREASURY 4.375 12/31/2029 4,400,000.00 -- 4.53% 4,369,171.88 4,372,009.36 102.48 3.77% 4,509,140.64 523.10 2.59% 137,131.28 Aa1/AA+ AA+ 4.50 4.06 91282CMG3 UNITED STATES TREASURY 4.25 01/31/2030 4,000,000.00 02/07/2025 4.34% 3,983,906.25 3,985,155.82 101.97 3.78% 4,078,906.24 70,911.60 2.35% 93,750.42 Aa1/AA+ AA+ 4.59 4.07 91282CGQ8 UNITED STATES TREASURY 4.0 02/28/2030 4,500,000.00 -- 4.01% 4,496,958.99 4,497,092.47 100.97 3.77% 4,543,769.52 60,163.04 2.61% 46,677.05 Aa1/AA+ AA+ 4.67 4.17 Total US Treasury 72,300,000.00 3.42% 71,890,701.18 72,097,754.56 100.06 3.83% 72,326,509.78 507,167.66 41.62% 228,755.21 2.77 2.54 Total Portfolio 174,552,255.38 3.73% 172,701,432.17 173,154,444.93 99.16 4.03% 173,784,957.99 1,267,966.53 100.00% 630,513.06 2.98 2.54 Total Market Value + Accrued 175,052,924.52 42 117 HOLDINGS REPORT City of Cupertino Reporting | Account #10663 | As of June 30, 2025 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody's/ S&P/ Fitch Maturity Duration CASH 90CASH$02 Cash 40,923.05 --40,923.05 40,923.05 1.00 40,923.05 0.00 0.03% 0.00 NA/NA NA 0.00 0.00 90CASH$00 Custodial Cash Account 51,674,890.48 -- 0.00% 51,674,890.48 51,674,890.48 1.00 0.00% 51,674,890.48 0.00 42.89% 0.00 NA/NA NA 0.00 0.00 CCYUSD Receivable 717,610.97 --717,610.97 717,610.97 1.00 0.00% 717,610.97 0.00 0.60% 0.00 Aaa/AAA AAA 0.00 0.00 Total Cash 52,433,424.50 0.00% 52,433,424.50 52,433,424.50 1.00 0.00% 52,433,424.50 0.00 43.52% 0.00 0.00 0.00 LAIF 90LAIF$00 Local Agency Investment Fund State Pool 68,055,207.44 -- 4.27% 68,055,207.44 68,055,207.44 1.00 4.27% 68,055,207.44 0.00 56.48% 0.00 NA/NA NA 0.00 0.00 Total LAIF 68,055,207.44 4.27% 68,055,207.44 68,055,207.44 1.00 4.27% 68,055,207.44 0.00 56.48% 0.00 0.00 0.00 Total Portfolio 120,488,631.94 2.43% 120,488,631.94 120,488,631.94 1.00 2.41% 120,488,631.94 0.00 100.00% 0.00 0.00 0.00 Total Market Value + Accrued 120,488,631.94 43 118 TRANSACTIONS 44 119 TRANSACTION LEDGER City of Cupertino | Account #10659|04/01/2025 Through 06/30/2025| Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss ACQUISITIONS Purchase 04/11/2025 91282CGQ8 1,650,000.00 UNITED STATES TREASURY 4.0 02/28/2030 100.000 4.00%(1,650,000.00)(7,532.61)(1,657,532.61)0.00 Purchase 05/07/2025 57629TBX4 1,000,000.00 MASSMUTUAL GLOBAL FUNDING II 4.55 05/07/2030 99.867 4.58%(998,670.00)0.00 (998,670.00)0.00 Purchase 05/13/2025 02582JKP4 1,420,000.00 AMXCA 2025-2 A 4.28 04/15/2030 99.998 4.28%(1,419,974.30)0.00 (1,419,974.30)0.00 Purchase 06/04/2025 91282CGQ8 2,000,000.00 UNITED STATES TREASURY 4.0 02/28/2030 99.949 4.01%(1,998,984.38)(20,869.57)(2,019,853.95)0.00 Purchase 06/10/2025 92970QAJ4 1,365,000.00 WFCIT 2025-1 A 4.34 05/15/2030 99.998 4.33%(1,364,977.34)0.00 (1,364,977.34)0.00 Purchase 06/10/2025 3137FPJG1 1,500,000.00 FHMS K-099 A2 2.595 09/25/2029 93.801 4.21%(1,407,011.72)(973.13)(1,407,984.85)0.00 Purchase 06/11/2025 3137FRUT6 2,000,000.00 FHMS K-106 A2 2.069 01/25/2030 90.504 4.37%(1,810,078.13)(1,149.44)(1,811,227.57)0.00 Purchase 06/13/2025 66815L2W8 1,000,000.00 NORTHWESTERN MUTUAL GLOBAL FUNDING 4.6 06/03/2030 100.404 4.51%(1,004,040.00)(1,277.78)(1,005,317.78)0.00 Total Purchase 11,935,000.00 (11,653,735.87)(31,802.53)(11,685,538.40)0.00 TOTAL ACQUISITIONS 11,935,000.00 (11,653,735.87)(31,802.53)(11,685,538.40)0.00 DISPOSITIONS Maturity 05/15/2025 02582JJT8 (1,375,000.00)AMXCA 2022-2 A 3.39 05/17/2027 100.000 3.42%0.00 0.00 0.00 0.00 Total Maturity (1,375,000.00)0.00 0.00 0.00 0.00 Sale 04/11/2025 91282CAM3 (1,100,000.00)UNITED STATES TREASURY 0.25 09/30/2025 98.160 0.56%1,079,761.72 82.65 1,079,844.37 (18,640.75) Sale 05/02/2025 57629W4S6 (1,000,000.00)MASSMUTUAL GLOBAL FUNDING II 5.1 04/09/2027 101.866 4.99%1,018,660.00 3,258.33 1,021,918.33 16,835.26 Sale 05/09/2025 3137EAEX3 (500,000.00) FEDERAL HOME LOAN MORTGAGE CORP 0.375 09/23/2025 98.539 0.46%492,695.00 239.58 492,934.58 (7,141.87) 45 120 TRANSACTION LEDGER City of Cupertino | Account #10659|04/01/2025 Through 06/30/2025| Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss Sale 06/04/2025 89115A2W1 (1,000,000.00)TORONTO-DOMINION BANK 4.98 04/05/2027 100.868 4.98%1,008,680.00 8,161.67 1,016,841.67 8,680.00 Sale 06/06/2025 3137EAEX3 (1,400,000.00) FEDERAL HOME LOAN MORTGAGE CORP 0.375 09/23/2025 98.820 0.46%1,383,480.00 1,064.58 1,384,544.58 (16,156.58) Sale 06/09/2025 665859AW4 (670,000.00)NORTHERN TRUST CORP 4.0 05/10/2027 99.294 4.03%665,269.80 2,158.89 667,428.69 (4,314.11) Sale 06/11/2025 3137BLMZ8 (1,000,000.00)FHMS K-049 A2 3.01 07/25/2025 99.617 0.87%135,397.65 113.64 135,511.29 (669.19) Sale 06/11/2025 3137BLW95 (950,000.00)FHMS K-050 A2 3.334 08/25/2025 99.625 1.22%388,308.56 360.98 388,669.54 (2,516.89) Sale 06/11/2025 3137BLMZ8 1,000,000.00 FHMS K-049 A2 3.01 07/25/2025 99.617 0.87%(135,397.65)(113.64)(135,511.29)669.19 Sale 06/11/2025 3137BLMZ8 (1,000,000.00)FHMS K-049 A2 3.01 07/25/2025 99.609 0.87%135,397.65 113.64 135,511.29 (669.19) Sale 06/13/2025 66815L2A6 (850,000.00) NORTHWESTERN MUTUAL GLOBAL FUNDING 0.8 01/14/2026 97.872 1.46%831,912.00 2,814.44 834,726.44 (14,851.45) Total Sale (8,470,000.00)7,004,164.73 18,254.76 7,022,419.49 (38,775.57) TOTAL DISPOSITIONS (9,845,000.00)7,004,164.73 18,254.76 7,022,419.49 (38,775.57) 46 121 TRANSACTION LEDGER City of Cupertino Reporting | Account #10663|04/01/2025 Through 06/30/2025| Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss ACQUISITIONS Purchase 06/30/2025 90LAIF$00 741,786.47 Local Agency Investment Fund State Pool 1.000 4.27%(741,786.47)0.00 (741,786.47)0.00 Total Purchase 741,786.47 (741,786.47)0.00 (741,786.47)0.00 TOTAL ACQUISITIONS 741,786.47 (741,786.47)0.00 (741,786.47)0.00 47 122 IMPORTANT DISCLOSURES City of Cupertino | As of June 30, 2025 2025 Chandler Asset Management, Inc, An Independent Registered Investment Adviser. Information contained herein is confidential. Prices are provided by ICE Data Services Inc (“IDS”), an independent pricing source. In the event IDS does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A. Performance results are presented gross-of-advisory fees and represent the client’s Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio. Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index. Source ICE Data Indices, LLC (“ICE”), used with permission. ICE permits use of the ICE indices and related data on an “as is” basis; ICE, its affiliates and their respective third party suppliers disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE data, its affiliates or their respective third party providers guarantee the quality, adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an “as is” basis and licensee’s use it at licensee’s own risk. ICE data, its affiliates and their respective third party do not sponsor, endorse, or recommend chandler asset management, or any of its products or services. This report is provided for informational purposes only and should not be construed as a specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject to change. This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results. Past performance is not indicative of future results. This report is not intended to constitute an offer, solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment. Fixed income investments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market in general could decline due to economic conditions, especially during periods of rising interest rates. Ratings information have been provided by Moody’s, S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy. Security level ratings for U.S. Agency issued mortgage-backed securities (“MBS”) reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full and timely payment of both principal and interest. 48 123 BENCHMARK DISCLOSURES City of Cupertino | Account #10659 | As of June 30, 2025 Benchmark Disclosure ICE BofA 1-5 Yr US Treasury & Agency Index The ICE BofA 1-5 Year US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch). Qualifying securities must have at least one year remaining term to final maturity and less than five years remaining term to final maturity, at least 18 months to maturity at time of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for sovereigns and $250 million for agencies. 49 124 INVESTMENT AND INSURANCE PRODUCTS ARE:·NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR ANY FEDERAL GOVERNMENT AGENCY·NOT A DEPOSIT, OBLIGATION OF, OR GUARANTEED BY ANY BANK OR BANKING AFFILIATE·SUBJECT TO INVESTMENT RISKS AND MAY LOSE VALUE, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED PCS - SAN FRANCISCO CA 510 N VALLEY MILLS DRIVE, SUITE 400 WACO, TX 76710-6075 CITY OF CUPERTINO - CHANDLER ASSET MANAGEMENT ACCOUNT NUMBER MONTHLY STATEMENT JUNE 1, 2025 THROUGH JUNE 30, 2025 ACCOUNT MANAGER: MICHAEL J WADE TELEPHONE NUMBER: 515-878-6110 PFGEDD INVESTMENT CONTACT: IMR/DEREK JOHNSON TELEPHONE NUMBER: ADMINISTRATOR: BELINDA CONWAY TELEPHONE NUMBER: 254-265-6137 18225 SE 125 Custody and trust services are provided by Principal Bank®, Member FDIC, and/or Principal Trust Company®. These services are provided under the trade name Principal®Custody Solutions. Principal Trust Company is a trade name of Delaware Charter Guarantee & Trust Company. Principal Bank and Principal Trust Company are members of the Principal Financial Group®, Des Moines, IA 50392. ASSET VALUATION PRACTICES VALUES REFLECTED FOR PUBLICLY TRADED ASSETS ARE OBTAINED FROM UNAFFILIATED SOURCES. IN SITUATIONS WHERE AN ASSET VALUE CANNOT BE PROVIDED BY OUR UNAFFILIATED PRICING SOURCES, SUCH AS BUT NOT LIMITED TO NON-PUBLICLY TRADED ASSETS, THE CUSTOMER OR THEIR DESIGNATED REPRESENTATIVE MUST PROVIDE THE UPDATED VALUE. IF PRINCIPAL CUSTODY SOLUTIONS DOES NOT RECEIVE AN UPDATED VALUE, OR IS UNABLE TO USE THE VALUE PROVIDED, THE LAST REPORTED VALUE WILL CONTINUE TO BE REPORTED. TRADE CONFIRMS PURSUANT TO FEDERAL REGULATION, MONTHLY OR QUARTERLY ACCOUNT STATEMENTS THAT INCLUDE INVESTMENT TRANSACTION DETAILS MAY BE PROVIDED IN LIEU OF SEPARATE TRADE CONFIRMATIONS. SEPARATE TRADE CONFIRMS MAY BE OBTAINED AT NO ADDITIONAL COST UPON WRITTEN REQUEST TO THE ACCOUNT MANAGER. UNCLAIMED PROPERTY DESIGNATED REPRESENTATIVE NOTIFICATION YOUR PROPERTY MAY BE TRANSFERRED TO THE APPROPRIATE STATE IF NO ACTIVITY OCCURS IN THE ACCOUNT WITHIN THE TIME PERIOD SPECIFIED BY STATE LAW. IF YOUR STATE OF RESIDENCE ALLOWS, YOU MAY DESIGNATE A REPRESENTATIVE FOR THE PURPOSE OF RECEIVING NOTICE OF ACCOUNT INACTIVITY BY PROVIDING THE NAME AND MAILING OR EMAIL ADDRESS OF A REPRESENTATIVE. THE DESIGNATED REPRESENTATIVE DOES NOT HAVE ANY RIGHTS TO YOUR ACCOUNT. PLEASE REFER TO YOUR STATE'S UNCLAIMED PROPERTY WEBSITE FOR MORE INFORMATION AND INSTRUCTIONS ON HOW TO DESIGNATE A REPRESENTATIVE FOR NOTICE. 126 TABLE OF CONTENTS CITY OF CUPERTINO FOR THE PERIOD JUNE 1, 2025 THROUGH JUNE 30, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ PAGE REPORT NAME NUMBER_________________ ASSET SUMMARY .................................................................................. 1 STATEMENT OF ASSETS AND LIABILITIES ............................................................ 2 CASH SUMMARY ................................................................................... 18 STATEMENT OF TRANSACTIONS ...................................................................... 19 127 PAGE 1 ASSET SUMMARY CITY OF CUPERTINO AS OF JUNE 30, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ ASSET SUMMARY % TOTAL UNREALIZED ESTIMATED CURRENT ACCRUED INVESTMENT CATEGORY COST VALUE MARKET VALUE MARKET GAIN/LOSS ANNUAL INCOME YIELD INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ CASH 0.00 0.00 0.00 CASH EQUIVALENTS 784,710.68 784,710.68 0.45 0.00 29,107 3.71 3,167.50 BONDS AND NOTES 171,916,591.28 173,000,218.62 99.55 1,083,627.34 6,023,611 3.48 1,268,006.88 ===================================================================================================================================== TOTAL INVESTMENTS 172,701,301.96 173,784,929.30 100.00 1,083,627.34 6,052,718 3.48 1,271,174.38 TOTAL ACCRUALS 1,271,174.38 1,271,174.38 ===================================================================================================================================== TOTAL ACCRUALS AND INVESTMENTS 173,972,476.34 175,056,103.68 1,083,627.34 6,052,718 3.48 1,271,174.38 128 PAGE 2 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF JUNE 30, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF ASSETS AND LIABILITIES COST VALUE MARKET VALUE % TOTAL UNREALIZED PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ CASH EQUIVALENTS______________________________________________________________________________________________________________________________________ 732,507.83 ALLSPRING 100% TREASURY 732,507.83 732,507.83 0.42 0.00 3,070.96 MONEY MARKET FUND - #008 1.0000 1.0000 52,202.85 PRINCIPAL PUBLIC DEPOSIT SWEEP 52,202.85 52,202.85 0.03 0.00 96.54 PROGRAM 1.0000 1.0000 ====================================================================================================================================== TOTAL CASH EQUIVALENTS 784,710.68 784,710.68 0.45 0.00 3,167.50 BOND & NOTES______________________________________________________________________________________________________________________________________ 1,875,000 AMAZON.COM INC 1,866,900.00 1,825,912.50 1.05 40,987.50- 2,552.08 DTD 05/12/21 1.000 05/12/2026 99.5680 97.3820 MOODY'S RATING A1 CUSIP 023135BX3 1,420,000 AMERICAN EXPRESS CREDIT ACCOUNT 1,419,974.30 1,428,690.40 0.82 8,716.10 2,701.16 ASSET BCKD SEC SER 2025-2 CL A 99.9982 100.6120 DTD 05/13/2025 4.280% 04/15/2030 NON CALLABLE CUSIP 02582JKP4 1,750,000 AMERICAN HONDA FINANCE 1,758,102.50 1,741,757.50 1.00 16,345.00- 24,811.11 MEDIUM TERM NOTE 100.4630 99.5290 DTD 09/05/2024 4.400% 09/05/2029 NON CALLABLE MOODY'S RATING A3 CUSIP 02665WFQ9 1,500,000 BANK OF AMERICA CORP 1,498,710.00 1,495,065.00 0.86 3,645.00- 28,117.42 DTD 07/23/18 07/23/2029 99.9140 99.6710 MOODY'S RATING A1 CUSIP 06051GHM4 850,000 BANK OF AMERICA CREDIT CARD TRUST 858,798.83 858,993.00 0.49 194.17 1,881.33 ASSET BCKD SEC SER 2023-A2 CL A2 101.0352 101.0580 DTD 12/14/2023 4.980% 11/15/2028 NON CALLABLE MOODY'S RATING AAA CUSIP 05522RDH8 129 PAGE 3 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF JUNE 30, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF ASSETS AND LIABILITIES COST VALUE MARKET VALUE % TOTAL UNREALIZED PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 785,000 BANK OF AMERICA CREDIT CARD TRUST 784,955.96 796,625.85 0.46 11,669.89 1,720.02 ASSET BCKD SEC SER 2024-A1 CL A 99.9944 101.4810 DTD 06/13/2024 4.930% 05/15/2029 NON CALLABLE MOODY'S RATING AAA CUSIP 05522RDJ4 1,615,000 BERKSHIRE HATHAWAY FIN 1,614,693.15 1,574,479.65 0.91 40,213.50- 10,937.14 DTD 03/15/2022 2.300% 03/15/2027 99.9810 97.4910 CALLABLE MOODY'S RATING AA2 CUSIP 084664CZ2 46,253.13 BMW VEHICLE OWNER TRUST 46,250.73 46,169.41 0.03 81.32-24.75 ASSET BCKD SEC SER 2022-A CL A3 99.9948 99.8190 DTD 05/18/2022 3.210% 08/25/2026 CALLABLE MOODY'S RATING AAA CUSIP 05602RAD3 695,000 BMW VEHICLE OWNER TRUST 694,894.43 703,763.95 0.40 8,869.52 600.02 ASSET BCKD SEC SER 2024-A CL A3 99.9848 101.2610 DTD 06/11/2024 5.180% 02/26/2029 CALLABLE MOODY'S RATING AAA CUSIP 096919AD7 1,740,000 CALIFORNIA STATE 1,749,169.80 1,770,885.00 1.02 21,715.20 32,625.00 GENERAL OBLIGATION 100.5270 101.7750 DTD 11/05/2024 4.500% 08/01/2029 NON CALLABLE MOODY'S RATING AA2 CUSIP 13063EGT7 1,000,000 CATERPILLAR FINL SERVICE 998,930.00 1,017,020.00 0.59 18,090.00 6,527.78 MEDIUM TERM NOTE 99.8930 101.7020 DTD 05/14/2024 5.000% 05/14/2027 NON CALLABLE MOODY'S RATING A2 CUSIP 14913UAL4 130 PAGE 4 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF JUNE 30, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF ASSETS AND LIABILITIES COST VALUE MARKET VALUE % TOTAL UNREALIZED PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,200,000 CATERPILLAR FINL SVCS 1,198,092.00 1,222,140.00 0.70 24,048.00 7,206.67 DTD 11/15/2024 4.700% 11/15/2029 99.8410 101.8450 NON CALLABLE MOODY'S RATING A2 CUSIP 14913UAU4 960,000 CHARLES SCHWAB CORP 959,729.90 932,947.20 0.54 26,782.70- 7,709.33 DTD 03/03/2022 2.450% 03/03/2027 99.9719 97.1820 CALLABLE MOODY'S RATING A2 CUSIP 808513BY0 1,690,000 CHASE ISSUANCE TRUST 1,689,742.61 1,702,370.80 0.98 12,628.19 3,455.11 ASSET BCKD SEC SER 2024-A1I CL A 99.9848 100.7320 DTD 01/31/2024 4.600% 01/16/2029 NON CALLABLE CUSIP 161571HV9 1,750,000 CHUBB INA HOLDINGS LLC 1,765,746.34 1,779,820.00 1.02 14,073.66 30,741.67 DTD 07/31/2024 4.650% 08/15/2029 100.8998 101.7040 CALLABLE MOODY'S RATING A2 CUSIP 171239AL0 600,000 FED HOME LN MTG CORP 597,447.07 594,534.00 0.34 2,913.07-612.50 DTD 09/25/20 0.375 09/23/2025 99.5745 99.0890 MOODY'S RATING AA1 CUSIP 3137EAEX3 1,288,000 FED HOME LN MTG CORP 1,228,178.44 1,266,554.80 0.73 38,376.36 3,824.29 SER K089 CL A2 *24 DAY DELAY*95.3555 98.3350 DTD 03/01/19 3.563 01/25/2029 CUSIP 3137FL6P4 1,985,462.82 FED HOME LN MTG CORP 1,915,506.28 1,912,060.26 1.10 3,446.02- 4,933.88 SER K093 CL A2 *24 DAY DELAY*96.4766 96.3030 DTD 06/01/19 2.982 05/25/2029 CUSIP 3137FMCR1 131 PAGE 5 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF JUNE 30, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF ASSETS AND LIABILITIES COST VALUE MARKET VALUE % TOTAL UNREALIZED PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,500,000 FED HOME LN MTG CORP 1,407,011.72 1,414,560.00 0.81 7,548.28 3,243.75 SER K099 CL A2 *24 DAY DELAY*93.8008 94.3040 DTD 10/01/19 2.595 09/25/2029 CUSIP 3137FPJG1 2,500,000 FED NATL MTG ASSN 2,492,700.00 2,467,000.00 1.42 25,700.00- 1,875.00 DTD 11/12/20 0.500 11/07/2025 99.7080 98.6800 MOODY'S RATING AA1 CUSIP 3135G06G3 2,800,000 FEDERAL FARM CREDIT BANK 2,789,612.00 2,848,664.00 1.64 59,052.00 16,547.22 DTD 11/15/2023 4.625% 11/15/2027 99.6290 101.7380 NON CALLABLE MOODY'S RATING AA1 CUSIP 3133EPC60 2,400,000 FEDERAL FARM CREDIT BANK 2,412,552.00 2,440,704.00 1.40 28,152.00 17,416.67 DTD 05/06/2024 4.750% 05/06/2027 100.5230 101.6960 NON CALLABLE MOODY'S RATING AA1 CUSIP 3133ERDS7 1,875,000 FEDERAL HOME LOAN BANK 1,870,050.00 1,906,837.50 1.10 36,787.50 20,286.46 DTD 04/11/2024 4.750% 04/09/2027 99.7360 101.6980 NON CALLABLE MOODY'S RATING AA1 CUSIP 3130B0TY5 2,000,000 FEDERAL HOME LOAN MORTGAGE CORP 1,801,718.75 1,882,560.00 1.08 80,841.25 3,766.67 CMO SER K748 CL A2 90.0860 94.1280 DTD 03/01/2022 2.260% 01/25/2029 NON CALLABLE CUSIP 3137H5YC5 650,000 FHLMC MULTIFAMILY STRUCTURED P 687,451.17 638,007.50 0.37 49,443.67- 1,437.04 SER K058 CL A2 *24 DAY DELAY*105.7617 98.1550 DTD 11/01/16 2.653 08/25/2026 CUSIP 3137BSP72 132 PAGE 6 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF JUNE 30, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF ASSETS AND LIABILITIES COST VALUE MARKET VALUE % TOTAL UNREALIZED PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,000,000 FHLMC MULTIFAMILY STRUCTURED P 950,664.06 982,740.00 0.57 32,075.94 2,703.33 SER K068 CL A2 *24 DAY DELAY*95.0664 98.2740 DTD 10/01/17 3.244 08/25/2027 MOODY'S RATING AAA CUSIP 3137FBBX3 2,000,000 FHLMC MULTIFAMILY STRUCTURED P 1,913,359.38 1,982,440.00 1.14 69,080.62 6,285.00 SER K087 CL A2 *24 DAY DELAY*95.6680 99.1220 DTD 01/01/19 3.771 12/25/2028 CUSIP 3137FKUP9 2,550,000 FHLMC MULTIFAMILY STRUCTURED P 2,465,830.08 2,518,405.50 1.45 52,575.42 7,841.25 SER K088 CL A2 *24 DAY DELAY*96.6992 98.7610 DTD 03/01/19 3.690 01/25/2029 MOODY'S RATING AAA CUSIP 3137FKZZ2 2,500,000 FHLMC MULTIFAMILY STRUCTURED P 2,431,738.28 2,451,500.00 1.41 19,761.72 7,302.08 SER K091 CL A2 *24 DAY DELAY*97.2695 98.0600 DTD 04/01/19 3.505 03/25/2029 CUSIP 3137FLN91 2,200,000 FHLMC MULTIFAMILY STRUCTURED P 2,039,382.82 2,098,118.00 1.21 58,735.18 5,105.83 SER K095 CL A2 *24 DAY DELAY*92.6992 95.3690 DTD 08/01/19 2.785 06/25/2029 CUSIP 3137FNAE0 1,600,000 FHLMC MULTIFAMILY STRUCTURED P 1,488,375.00 1,501,264.00 0.86 12,889.00 3,233.33 SER K098 CL A2 *24 DAY DELAY*93.0235 93.8290 DTD 10/01/19 2.425 08/25/2029 CUSIP 3137FPHK4 2,000,000 FHLMC MULTIFAMILY STRUCTURED P 1,810,078.13 1,831,020.00 1.05 20,941.87 3,448.33 SER K106 CL A2 *24 DAY DELAY*90.5039 91.5510 DTD 03/01/20 2.069 01/25/2030 CUSIP 3137FRUT6 133 PAGE 7 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF JUNE 30, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF ASSETS AND LIABILITIES COST VALUE MARKET VALUE % TOTAL UNREALIZED PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 882.14 GM FINANCIAL SECURITIZED TERM 882.12 880.75 0.00 1.37-0.25 SER 2021-4 CL A3 *0 DAY DELAY*99.9977 99.8420 DTD 10/21/21 0.680 09/16/2026 MOODY'S RATING AAA CUSIP 362554AC1 78,678.28 GM FINANCIAL SECURITIZED TERM 78,661.84 78,406.84 0.05 255.00-101.63 ASSET BCKD SEC SER 2022-2 CL A3 99.9791 99.6550 DTD 04/13/2022 3.100% 02/16/2027 CALLABLE MOODY'S RATING AAA CUSIP 362585AC5 1,310,000 GM FINANCIAL SECURITIZED TERM 1,307,922.66 1,316,550.00 0.76 8,627.34 2,647.29 ASSET BCKD SEC SER 2024-1 CL A3 99.8414 100.5000 DTD 01/17/2024 4.850% 12/18/2028 CALLABLE MOODY'S RATING AAA CUSIP 36268GAD7 9,082.95 GM FINANCIAL SECURITIZED TERM 9,082.16 9,070.05 0.01 12.11-4.77 SER 2022-1 CL A3 *0 DAY DELAY*99.9913 99.8580 DTD 01/19/22 1.260 11/16/2026 CUSIP 380146AC4 1,205,000 GUARDIAN LIFE GLOBAL FDG 1,205,000.00 1,199,601.60 0.69 5,398.40- 13,288.64 MEDIUM TERM NOTE 100.0000 99.5520 DTD 09/26/2024 4.179% 09/26/2029 NON CALLABLE 144A PRIVATE PLACEMENT MOODY'S RATING AA1 CUSIP 40139LBJ1 1,663,000 HOME DEPOT INC 1,593,203.89 1,591,374.59 0.92 1,829.30- 2,180.38 DTD 06/17/19 2.950 06/15/2029 95.8030 95.6930 MOODY'S RATING A2 CUSIP 437076BY7 134 PAGE 8 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF JUNE 30, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF ASSETS AND LIABILITIES COST VALUE MARKET VALUE % TOTAL UNREALIZED PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,000,000 HOME DEPOT INC 992,260.00 1,020,730.00 0.59 28,470.00 791.67 DTD 06/25/2024 4.750% 06/25/2029 99.2260 102.0730 CALLABLE MOODY'S RATING A2 CUSIP 437076DC3 535,000 HONDA AUTO RECEIVABLES OWNER 534,935.00 541,393.25 0.31 6,458.25 1,018.13 ASSET BCKD SEC SER 2024-2 CL A3 99.9879 101.1950 DTD 05/21/2024 5.270% 11/20/2028 CALLABLE CUSIP 437930AC4 805,000 HONDA AUTO RECEIVABLES OWNER 806,992.67 813,589.35 0.47 6,596.68 1,267.88 ASSET BCKD SEC SER 2023-4 CL A3 100.2476 101.0670 DTD 11/08/2023 5.670% 06/21/2028 NON CALLABLE MOODY'S RATING AAA CUSIP 438123AC5 45,267.43 HONDA AUTO RECEIVABLES OWNER T 45,260.62 45,175.54 0.03 85.08-37.82 SER 2022-1 CL A3 *0 DAY DELAY*99.9850 99.7970 DTD 02/23/22 1.000 05/15/2026 MOODY'S RATING AAA CUSIP 43815BAC4 610,000 HYUNDAI AUTO LEASE SECURITIZAT 609,983.04 614,843.40 0.35 4,860.36 1,466.71 ASSET BCKD SEC SER 2024-B CL A3 99.9972 100.7940 DTD 05/22/2024 5.410% 05/17/2027 CALLABLE 144A PRIVATE PLACEMENT CUSIP 44934FAD7 65,901.33 HYUNDAI AUTO RECEIVABLES TRUST 65,898.79 65,791.27 0.04 107.52-65.02 ASSET BCKD SEC SER 2022-A CL A3 99.9962 99.8330 DTD 03/16/2022 2.220% 10/15/2026 CALLABLE CUSIP 448977AD0 135 PAGE 9 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF JUNE 30, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF ASSETS AND LIABILITIES COST VALUE MARKET VALUE % TOTAL UNREALIZED PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 2,460,000 INTER-AMERICAN DEVEL BK 2,448,733.20 2,397,688.20 1.38 51,045.00- 4,245.21 DTD 04/20/21 0.875 04/20/2026 99.5420 97.4670 MOODY'S RATING AAA CUSIP 4581X0DV7 1,750,000 INTL BANK RECON & DEVELOPMENT 1,721,510.00 1,754,112.50 1.01 32,602.50 14,127.60 DTD 10/16/2024 3.875% 10/16/2029 98.3720 100.2350 NON CALLABLE MOODY'S RATING AAA CUSIP 459058LN1 2,400,000 INTL BK RECON & DEVELOP 2,388,859.25 2,369,760.00 1.36 19,099.25- 2,100.00 DTD 10/28/20 0.500 10/28/2025 99.5358 98.7400 MOODY'S RATING AAA CUSIP 459058JL8 1,700,000 INTL BK RECON & DEVELOP 1,694,220.00 1,720,825.00 0.99 26,605.00 19,673.96 DTD 03/20/2025 4.125% 03/20/2030 99.6600 101.2250 NON CALLABLE MOODY'S RATING AAA CUSIP 459058LR2 1,430,000 JOHN DEERE CAPITAL CORPORATION 1,429,571.00 1,451,593.00 0.84 22,022.00 31,769.83 DTD 01/09/2025 4.650% 01/07/2028 99.9700 101.5100 NON CALLABLE MOODY'S RATING A1 CUSIP 24422EXZ7 46,593.42 JOHN DEERE OWNER TRUST 46,583.11 46,461.09 0.03 122.02-48.04 ASSET BCKD SEC SER 2022-A CL A3 99.9779 99.7160 DTD 03/16/2022 2.320% 09/16/2026 NON CALLABLE MOODY'S RATING AAA CUSIP 47787JAC2 192,472.56 JOHN DEERE OWNER TRUST 192,454.18 191,848.95 0.11 605.23-319.93 ASSET BCKD SEC SER 2022-B CL A3 99.9905 99.6760 DTD 07/20/2022 3.740% 02/16/2027 NON CALLABLE MOODY'S RATING AAA CUSIP 47800AAC4 136 PAGE 10 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF JUNE 30, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF ASSETS AND LIABILITIES COST VALUE MARKET VALUE % TOTAL UNREALIZED PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 469,547.22 JOHN DEERE OWNER TRUST 469,510.79 470,805.61 0.27 1,294.82 1,062.22 ASSET BCKD SEC SER 2022-C CL A3 99.9923 100.2680 DTD 10/19/2022 5.090% 06/15/2027 CALLABLE MOODY'S RATING AAA CUSIP 47800BAC2 500,000 JOHN DEERE OWNER TRUST 499,765.63 504,620.00 0.29 4,854.37 1,102.22 ASSET BCKD SEC SER 2024-A CL A3 99.9531 100.9240 DTD 03/19/2024 4.960% 11/15/2028 CALLABLE MOODY'S RATING AAA CUSIP 47800RAD5 1,500,000 JPMORGAN CHASE & CO 1,496,610.00 1,493,670.00 0.86 2,940.00- 27,669.75 DTD 07/23/18 07/23/2029 99.7740 99.5780 MOODY'S RATING A1 CUSIP 46647PAV8 1,400,000 MARSH & MCLENNAN COS INC 1,397,340.00 1,415,792.00 0.81 18,452.00 19,168.33 DTD 11/08/2024 4.650% 03/15/2030 99.8100 101.1280 CALLABLE MOODY'S RATING A3 CUSIP 571748CA8 1,000,000 MASSMUTUAL GLBL FDG II 998,670.00 1,007,140.00 0.58 8,470.00 6,825.00 MEDIUM TERM NOTE 99.8670 100.7140 DTD 05/07/2025 4.550% 05/07/2030 NON CALLABLE 144A PRIVATE PLACEMENT MOODY'S RATING AA3 CUSIP 57629TBX4 1,000,000 MASSMUTUAL GLOBAL FUNDIN 1,002,230.00 969,300.00 0.56 32,930.00- 5,500.00 144A PRIV PLCMT 1.200 07/16/2026 100.2230 96.9300 MOODY'S RATING AA3 CUSIP 57629WDE7 137 PAGE 11 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF JUNE 30, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF ASSETS AND LIABILITIES COST VALUE MARKET VALUE % TOTAL UNREALIZED PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 945,000 MASTERCARD INC 944,083.35 966,357.00 0.56 22,273.65 14,332.50 DTD 03/09/2023 4.875% 03/09/2028 99.9030 102.2600 CALLABLE MOODY'S RATING AA3 CUSIP 57636QAW4 1,100,000 MERCEDES-BENZ AUTO RECEIVABLES TRUST 1,123,289.06 1,114,289.00 0.64 9,000.06- 2,908.89 ASSET BCKD SEC SER 2023-2 CL A3 102.1172 101.2990 DTD 10/25/2023 5.950% 11/15/2028 CALLABLE CUSIP 58769FAC9 1,115,000 MET LIFE GLOB FUNDING I 1,113,728.90 1,077,647.50 0.62 36,081.40- 9,872.40 144A PRIV PLCMT 1.875 01/11/2027 99.8860 96.6500 MOODY'S RATING AA3 CUSIP 59217GER6 770,000 MET TOWER GLOBAL FUNDING 769,291.60 742,480.20 0.43 26,811.40- 2,860.76 144A PRIV PLCMT 1.250 09/14/2026 99.9080 96.4260 MOODY'S RATING AA3 CUSIP 58989V2D5 912,000 META PLATFORMS INC 910,584.09 920,317.44 0.53 9,733.35 14,814.93 DTD 08/09/2024 4.300% 08/15/2029 99.8448 100.9120 CALLABLE MOODY'S RATING AA3 CUSIP 30303M8S4 1,950,000 MORGAN STANLEY BANK 1,950,000.00 1,973,361.00 1.14 23,361.00 44,939.70 DTD 07/19/2024 VAR CPN 07/14/2028 100.0000 101.1980 CALLABLE MOODY'S RATING AA3 CUSIP 61690U8E3 1,000,000 NATIONAL RURAL UTILS COOP 1,002,873.61 1,022,840.00 0.59 19,966.39 19,800.00 MEDIUM TERM NOTE 100.2874 102.2840 DTD 02/07/2025 4.950% 02/07/2030 CALLABLE MOODY'S RATING A2 CUSIP 63743HFX5 138 PAGE 12 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF JUNE 30, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF ASSETS AND LIABILITIES COST VALUE MARKET VALUE % TOTAL UNREALIZED PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,000,000 NEW YORK LIFE GLOBAL FDG 994,880.00 1,022,880.00 0.59 28,000.00 3,472.22 MEDIUM TERM NOTE 99.4880 102.2880 DTD 06/06/2024 5.000% 06/06/2029 NON CALLABLE 144A PRIVATE PLACEMENT MOODY'S RATING AA1 CUSIP 64952WFG3 1,365,000 NEW YORK LIFE GLOBAL FDG 1,364,221.95 1,380,219.75 0.79 15,997.80 4,534.83 DTD 12/05/2024 4.600% 12/05/2029 99.9430 101.1150 NON CALLABLE 144A PRIVATE PLACEMENT MOODY'S RATING AA1 CUSIP 64952WFK4 1,000,000 NORTHWESTERN MUTUAL GLBL 1,004,040.00 1,010,530.00 0.58 6,490.00 3,577.78 MEDIUM TERM NOTE 100.4040 101.0530 DTD 06/03/2025 4.600% 06/03/2030 NON CALLABLE 144A PRIVATE PLACEMENT MOODY'S RATING AA1 CUSIP 66815L2W8 1,500,000 PEPSICO INC 1,497,675.00 1,523,910.00 0.88 26,235.00 30,750.00 DTD 07/17/2024 4.500% 07/17/2029 99.8450 101.5940 CALLABLE MOODY'S RATING A1 CUSIP 713448FX1 1,500,000 PROGRESSIVE CORP 1,455,495.00 1,490,925.00 0.86 35,430.00 20,000.00 DTD 10/23/18 4.000 03/01/2029 97.0330 99.3950 MOODY'S RATING A2 CUSIP 743315AV5 1,500,000 PROLOGIS LP 1,481,235.00 1,510,275.00 0.87 29,040.00 27,343.75 DTD 02/01/20 4.375 02/01/2029 98.7490 100.6850 MOODY'S RATING A2 CUSIP 74340XBL4 139 PAGE 13 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF JUNE 30, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF ASSETS AND LIABILITIES COST VALUE MARKET VALUE % TOTAL UNREALIZED PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,463,000 REALTY INCOME CORP 1,419,212.41 1,444,361.38 0.83 25,148.97 26,984.22 DTD 01/15/2024 4.000% 07/15/2029 97.0070 98.7260 CALLABLE MOODY'S RATING A3 CUSIP 756109CB8 2,000,000 ROYAL BANK OF CANADA 2,019,920.00 2,045,820.00 1.18 25,900.00 41,250.00 MEDIUM TERM NOTE 100.9960 102.2910 CONVERTIBLE DTD 01/19/2024 4.950% 02/01/2029 NON CALLABLE MOODY'S RATING A1 CUSIP 78016HZV5 1,266,273.2 TOYOTA AUTO RECEIVABLES OWNER 1,261,128.97 1,273,123.74 0.73 11,994.77 2,903.99 ASSET BCKD SEC SER 2023-C CL A3 99.5938 100.5410 DTD 08/15/2023 5.160% 04/17/2028 CALLABLE CUSIP 89231FAD2 1,385,000 TOYOTA MOTOR CREDIT CORP 1,384,390.60 1,344,197.90 0.77 40,192.70-562.66 MED TERM NOTE 99.9560 97.0540 DTD 06/18/21 1.125 06/18/2026 MOODY'S RATING A1 CUSIP 89236TJK2 1,445,000 TOYOTA MOTOR CREDIT CORP 1,441,907.70 1,477,700.35 0.85 35,792.65 34,174.25 MEDIUM TERM NOTE 99.7860 102.2630 DTD 01/09/2025 4.950% 01/09/2030 NON CALLABLE MOODY'S RATING A1 CUSIP 89236TNA9 3,250,000 UNITED STATES TREASURY NOTES 3,260,312.50 3,220,945.00 1.85 39,367.50-287.02 DTD 06/30/2022 3.250% 06/30/2027 100.3173 99.1060 MOODY'S RATING AA1 CUSIP 91282CEW7 140 PAGE 14 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF JUNE 30, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF ASSETS AND LIABILITIES COST VALUE MARKET VALUE % TOTAL UNREALIZED PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 400,000 UNITED STATES TREASURY NOTES 393,218.75 392,204.00 0.23 1,014.75- 4,588.40 DTD 07/31/2022 2.750% 07/31/2027 98.3047 98.0510 MOODY'S RATING AA1 CUSIP 91282CFB2 4,500,000 UNITED STATES TREASURY NOTES 4,468,902.34 4,444,650.00 2.56 24,252.34- 47,002.38 DTD 08/31/2022 3.125% 08/31/2027 99.3090 98.7700 MOODY'S RATING AA1 CUSIP 91282CFH9 3,450,000 UNITED STATES TREASURY NOTES 3,421,152.34 3,481,395.00 2.00 60,242.66 35,772.54 DTD 09/30/2022 4.125% 09/30/2027 99.1639 100.9100 MOODY'S RATING AA1 CUSIP 91282CFM8 850,000 UNITED STATES TREASURY NOTES 852,656.25 853,255.50 0.49 599.25 2,789.79 DTD 11/30/2022 3.875% 11/30/2027 100.3125 100.3830 MOODY'S RATING AA1 CUSIP 91282CFZ9 2,750,000 UNITED STATES TREASURY NOTES 2,775,107.42 2,761,605.00 1.59 13,502.42-289.57 DTD 12/31/2022 3.875% 12/31/2027 100.9130 100.4220 MOODY'S RATING AA1 CUSIP 91282CGC9 3,000,000 UNITED STATES TREASURY NOTES 2,957,929.69 2,984,760.00 1.72 26,830.31 43,798.34 DTD 01/31/2023 3.500% 01/31/2028 98.5977 99.4920 MOODY'S RATING AA1 CUSIP 91282CGH8 3,700,000 UNITED STATES TREASURY NOTES 3,699,113.28 3,728,046.00 2.15 28,932.72 49,467.39 DTD 02/28/2023 4.000% 02/29/2028 99.9760 100.7580 MOODY'S RATING AA1 CUSIP 91282CGP0 4,500,000 UNITED STATES TREASURY NOTES 4,496,958.99 4,543,785.00 2.61 46,826.01 60,163.04 DTD 02/28/2023 4.000% 02/28/2030 99.9324 100.9730 MOODY'S RATING AA1 CUSIP 91282CGQ8 141 PAGE 15 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF JUNE 30, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF ASSETS AND LIABILITIES COST VALUE MARKET VALUE % TOTAL UNREALIZED PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 2,500,000 UNITED STATES TREASURY NOTES 2,525,097.66 2,518,650.00 1.45 6,447.66- 4,781.42 DTD 12/15/2023 4.375% 12/15/2026 101.0039 100.7460 MOODY'S RATING AA1 CUSIP 91282CJP7 2,300,000 UNITED STATES TREASURY NOTES 2,249,867.19 2,331,096.00 1.34 81,228.81 23,848.36 DTD 03/31/2024 4.125% 03/31/2029 97.8203 101.3520 MOODY'S RATING AA1 CUSIP 91282CKG5 2,300,000 UNITED STATES TREASURY NOTES 2,283,109.38 2,328,658.00 1.34 45,548.62 21,774.59 DTD 04/15/2024 4.500% 04/15/2027 99.2656 101.2460 MOODY'S RATING AA1 CUSIP 91282CKJ9 3,200,000 UNITED STATES TREASURY NOTES 3,186,500.00 3,242,112.00 1.87 55,612.00 18,391.30 DTD 05/15/2024 4.500% 05/15/2027 99.5781 101.3160 MOODY'S RATING AA1 CUSIP 91282CKR1 2,000,000 UNITED STATES TREASURY NOTES 1,985,546.88 2,037,180.00 1.17 51,633.12 230.98 DTD 06/30/2024 4.250% 06/30/2029 99.2774 101.8590 MOODY'S RATING AA1 CUSIP 91282CKX8 3,500,000 UNITED STATES TREASURY NOTES 3,527,480.47 3,482,640.00 2.00 44,840.47- 42,406.59 DTD 08/31/2024 3.625% 08/31/2029 100.7852 99.5040 MOODY'S RATING AA1 CUSIP 91282CLK5 5,000,000 UNITED STATES TREASURY NOTES 4,925,039.06 4,949,600.00 2.85 24,560.94 43,989.07 DTD 09/30/2024 3.500% 09/30/2029 98.5008 98.9920 MOODY'S RATING AA1 CUSIP 91282CLN9 3,000,000 UNITED STATES TREASURY NOTES 2,993,789.06 3,042,900.00 1.75 49,110.94 20,849.18 DTD 10/31/2024 4.125% 10/31/2029 99.7930 101.4300 MOODY'S RATING AA1 CUSIP 91282CLR0 142 PAGE 16 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF JUNE 30, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF ASSETS AND LIABILITIES COST VALUE MARKET VALUE % TOTAL UNREALIZED PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 4,400,000 UNITED STATES TREASURY NOTES 4,369,171.88 4,509,164.00 2.59 139,992.12 523.10 DTD 12/31/2024 4.375% 12/31/2029 99.2994 102.4810 MOODY'S RATING AA1 CUSIP 91282CMD0 4,000,000 UNITED STATES TREASURY NOTES 3,983,906.25 4,078,920.00 2.35 95,013.75 70,911.60 DTD 01/31/2025 4.250% 01/31/2030 99.5977 101.9730 MOODY'S RATING AA1 CUSIP 91282CMG3 2,000,000 UNITEDHEALTH GROUP INC 1,906,080.00 1,887,720.00 1.09 18,360.00- 21,722.22 DTD 07/25/19 2.875 08/15/2029 95.3040 94.3860 MOODY'S RATING A2 CUSIP 91324PDS8 1,035,000 UNITEDHEALTH GROUP INC 1,025,051.35 1,006,082.10 0.58 18,969.25- 1,520.87 DTD 05/19/21 1.150 05/15/2026 99.0388 97.2060 MOODY'S RATING A2 CUSIP 91324PEC2 1,200,000 US TREASURY NOTE 1,183,070.31 1,188,012.00 0.68 4,941.69 758.15 DTD 09/30/20 0.250 09/30/2025 98.5892 99.0010 MOODY'S RATING AA1 CUSIP 91282CAM3 2,450,000 US TREASURY NOTE 2,422,492.19 2,417,292.50 1.39 5,199.69- 1,031.93 DTD 10/31/20 0.250 10/31/2025 98.8772 98.6650 MOODY'S RATING AA1 CUSIP 91282CAT8 2,250,000 US TREASURY NOTE 2,209,658.20 2,213,865.00 1.27 4,206.80 733.70 DTD 11/30/20 0.375 11/30/2025 98.2070 98.3940 MOODY'S RATING AA1 CUSIP 91282CAZ4 2,500,000 US TREASURY NOTE 2,456,445.31 2,444,950.00 1.41 11,495.31- 3,910.57 DTD 02/01/21 0.375 01/31/2026 98.2578 97.7980 MOODY'S RATING AA1 CUSIP 91282CBH3 143 PAGE 17 STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO AS OF JUNE 30, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF ASSETS AND LIABILITIES COST VALUE MARKET VALUE % TOTAL UNREALIZED PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 2,500,000 US TREASURY NOTE 2,493,652.34 2,432,250.00 1.40 61,402.34- 3,176.23 DTD 04/30/21 0.750 04/30/2026 99.7461 97.2900 MOODY'S RATING AA1 CUSIP 91282CBW0 1,400,000 US TREASURY NOTE 1,379,054.68 1,348,592.00 0.78 30,462.68- 3,079.24 DTD 09/30/21 0.875 09/30/2026 98.5039 96.3280 MOODY'S RATING AA1 CUSIP 91282CCZ2 1,400,000 US TREASURY NOTE 1,391,468.75 1,350,076.00 0.78 41,392.75- 2,653.53 DTD 11/01/21 1.125 10/31/2026 99.3906 96.4340 CUSIP 91282CDG3 350,000 WALMART INC 349,338.50 338,257.50 0.19 11,081.00- 1,061.67 DTD 09/17/21 1.050 09/17/2026 99.8110 96.6450 MOODY'S RATING AA2 CUSIP 931142ER0 1,365,000 WELLS FARGO CARD ISSUANCE TRUST 1,364,977.34 1,375,687.95 0.79 10,710.61 3,455.73 ASSET BCKD SEC SER 2025-A1 CL A 99.9984 100.7830 DTD 06/10/2025 4.340% 05/15/2030 NON CALLABLE CUSIP 92970QAJ4 ====================================================================================================================================== TOTAL BOND & NOTES 171,916,591.28 173,000,218.62 99.55 1,083,627.34 1,268,006.88 ====================================================================================================================================== TOTAL INVESTMENTS 172,701,301.96 173,784,929.30 100.00 1,083,627.34 1,271,174.38 TOTAL ACCRUALS 1,271,174.38 1,271,174.38 ====================================================================================================================================== TOTAL ACCRUALS AND INVESTMENTS 173,972,476.34 175,056,103.68 144 PAGE 18 CASH SUMMARY CITY OF CUPERTINO FOR THE PERIOD JUNE 1, 2025 THROUGH JUNE 30, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ CASH SUMMARY DESCRIPTION PRINCIPAL CASH INCOME CASH ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ BEGINNING BALANCE 0.00 0.00 RECEIPTS NET INTEREST COLLECTED 0.00 531,405.97 TRANSFER RECEIPTS 531,405.97 0.00 SALES 5,419,774.84 0.00 CASH MANAGEMENT SALES 4,962,422.02 0.00 TOTAL CASH RECEIPTS 10,913,602.83 531,405.97 DISBURSEMENTS INVESTMENT MANAGEMENT EXPENSES 10,358.71-0.00 TRANSFER DISBURSEMENTS 0.00 531,405.97- PURCHASES 7,585,091.57-0.00 CASH MANAGEMENT PURCHASES 3,318,152.55-0.00 TOTAL CASH DISBURSEMENTS 10,913,602.83-531,405.97- ======================================================================================================================================== ENDING BALANCE 0.00 0.00 ________________________________________________________________________________________________________________________________________ 145 PAGE 19 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD JUNE 1, 2025 THROUGH JUNE 30, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ BEGINNING BALANCE 0.00 172,279,577.57 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ CASH EQUIVALENTS 06/02/25 INTEREST RECEIVED 5,657.22 AS 100% TREAS MM FD-SVC CL #008 INTEREST FROM 5/1/25 TO 5/31/25 06/02/25 INTEREST RECEIVED 99.57 PRINCIPAL PUBLIC DEPOSIT SWEEP PRGRM INTEREST FROM 05.01.25 TO 05.31.25 06/30/25 3,318,052.98 CASH SWEEP PURCHASES FOR STMT PERIOD 3,318,052.98- 3,318,052.98 AS 100% TREAS MM FD-SVC CL #008 12 TRANSACTIONS 06/30/25 99.57 CASH SWEEP PURCHASES FOR STMT PERIOD 99.57-99.57 PRINCIPAL PUBLIC DEPOSIT SWEEP PRGRM 1 TRANSACTIONS 06/30/25 4,962,422.02- CASH SWEEP SALES FOR STMT PERIOD 4,962,422.02 4,962,422.02- AS 100% TREAS MM FD-SVC CL #008 7 TRANSACTIONS BONDS & NOTES 06/16/25 INTEREST RECEIVED 5,402.31 AMER EXPR CREDIT ABS 4.280% 4/15/30 CUSIP 02582JKP4 $0.00380/PV ON 1,420,000.00 PV DUE 6/15/25 06/16/25 INTEREST RECEIVED 3,225.04 BANK OF AMERICA ABS 4.930% 5/15/29 CUSIP 05522RDJ4 $0.00411/PV ON 785,000.00 PV DUE 6/15/25 146 PAGE 20 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD JUNE 1, 2025 THROUGH JUNE 30, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 06/16/25 INTEREST RECEIVED 3,527.50 BK OF AMERICA ABS 4.980% 11/15/28 CUSIP 05522RDH8 $0.00415/PV ON 850,000.00 PV DUE 6/15/25 06/25/25 INTEREST RECEIVED 173.96 BMW VEHICLE OWN ABS 3.210% 8/25/26 CUSIP 05602RAD3 $0.00033/PV ON 65,030.92 PV DUE 6/25/25 06/25/25 18,777.79- PAID DOWN 18,777.79 18,776.81-0.98 BMW VEHICLE OWN ABS 3.210% 8/25/26 CUSIP 05602RAD3 06/25/25 INTEREST RECEIVED 3,000.08 BMW VEHICLE OWN ABS 5.180% 2/26/29 CUSIP 096919AD7 $0.00432/PV ON 695,000.00 PV DUE 6/25/25 06/16/25 INTEREST RECEIVED 6,478.33 CHASE ISSUANCE ABS 4.600% 1/16/29 CUSIP 161571HV9 $0.00383/PV ON 1,690,000.00 PV DUE 6/15/25 06/06/25 1,400,000- SOLD 1,383,480.00 1,394,043.17-10,563.17- FED HOME LN MTG CORP 0.375% 9/23/25 CUSIP 3137EAEX3 AT $98.8200 ON TRADE DATE 06/05/2025 TO SETTLE ON 06/06/2025 MELLON BANK/CAPITAL MARKETS 147 PAGE 21 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD JUNE 1, 2025 THROUGH JUNE 30, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 06/06/25 ACCRUED INTEREST ON SALE 1,064.58 FED HOME LN MTG CORP 0.375% 9/23/25 CUSIP 3137EAEX3 06/10/25 1,500,000 PURCHASED 1,407,011.72- 1,407,011.72 FED HOME LN MTG CORP 2.595% 9/25/29 CUSIP 3137FPJG1 AT $93.8008 ON TRADE DATE 06/05/2025 TO SETTLE ON 06/10/2025 WACHOVIA CAPITAL MARKETS, LLC. 06/10/25 ACCRUED INTEREST ON PURCHASE 973.13- FED HOME LN MTG CORP 2.595% 9/25/29 CUSIP 3137FPJG1 06/25/25 INTEREST RECEIVED 4,939.20 FED HOME LN MTG CORP 2.982% 5/25/29 CUSIP 3137FMCR1 $0.00247/PV ON 1,987,604.20 PV DUE 6/25/25 06/25/25 2,141.38- PAID DOWN 2,141.38 2,065.93-75.45 FED HOME LN MTG CORP 2.982% 5/25/29 CUSIP 3137FMCR1 06/25/25 INTEREST RECEIVED 3,824.29 FED HOME LN MTG CORP 3.563% 1/25/29 CUSIP 3137FL6P4 $0.00297/PV ON 1,288,000.00 PV DUE 6/25/25 06/11/25 2,000,000 PURCHASED 1,810,078.13- 1,810,078.13 FHLMC MULTIFAMILY ST 2.069% 1/25/30 CUSIP 3137FRUT6 AT $90.5039 ON TRADE DATE 06/06/2025 TO SETTLE ON 06/11/2025 WACHOVIA CAPITAL MARKETS, LLC. 148 PAGE 22 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD JUNE 1, 2025 THROUGH JUNE 30, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 06/11/25 ACCRUED INTEREST ON PURCHASE 1,149.44- FHLMC MULTIFAMILY ST 2.069% 1/25/30 CUSIP 3137FRUT6 06/25/25 INTEREST RECEIVED 3,233.33 FHLMC MULTIFAMILY ST 2.425% 8/25/29 CUSIP 3137FPHK4 $0.00202/PV ON 1,600,000.00 PV DUE 6/25/25 06/25/25 INTEREST RECEIVED 1,437.04 FHLMC MULTIFAMILY ST 2.653% 8/25/26 CUSIP 3137BSP72 $0.00221/PV ON 650,000.00 PV DUE 6/25/25 06/25/25 INTEREST RECEIVED 5,105.83 FHLMC MULTIFAMILY ST 2.785% 6/25/29 CUSIP 3137FNAE0 $0.00232/PV ON 2,200,000.00 PV DUE 6/25/25 06/11/25 261,105.56- PAID DOWN-RV 261,105.56-281,912.41 20,806.85 FHLMC MULTIFAMILY ST 3.010% 8/25/25 CUSIP 3137BLMZ8 TO SETTLE ON 06/11/2025 06/11/25 REVERSAL 1,875.25- INTEREST RECEIVED FHLMC MULTIFAMILY ST 3.010% 8/25/25 CUSIP 3137BLMZ8 CU06 06/11/25 INTEREST RECEIVED 1,875.25 FHLMC MULTIFAMILY ST 3.010% 8/25/25 CUSIP 3137BLMZ8 $0.00188/PV ON 747,608.50 PV DUE 5/25/25 149 PAGE 23 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD JUNE 1, 2025 THROUGH JUNE 30, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 06/11/25 261,143.37- PAID DOWN 261,143.37 281,953.23-20,809.86- FHLMC MULTIFAMILY ST 3.010% 8/25/25 CUSIP 3137BLMZ8 TO SETTLE ON 06/11/2025 06/11/25 0.01 SHARE ADJUSTMENT FHLMC MULTIFAMILY ST 3.010% 8/25/25 CUSIP 3137BLMZ8 06/25/25 INTEREST RECEIVED 1,220.22 FHLMC MULTIFAMILY ST 3.010% 8/25/25 CUSIP 3137BLMZ8 $0.00251/PV ON 350,547.18 PV DUE 6/25/25 06/25/25 350,547.17- PAID DOWN 350,547.17 378,481.39-27,934.22- FHLMC MULTIFAMILY ST 3.010% 8/25/25 CUSIP 3137BLMZ8 06/25/25 135,917.96- SOLD 135,397.65 146,748.92-11,351.27- FHLMC MULTIFAMILY ST 3.010% 8/25/25 CUSIP 3137BLMZ8 AT $99.6172 ON TRADE DATE 06/06/2025 TO SETTLE ON 06/25/2025 TORONTO DOMINION SECURITIES (U 06/25/25 ACCRUED INTEREST ON SALE 113.64 FHLMC MULTIFAMILY ST 3.010% 8/25/25 CUSIP 3137BLMZ8 06/25/25 0.01- DELIVERED 0.01- FHLMC MULTIFAMILY ST 3.010% 8/25/25 CUSIP 3137BLMZ8 TAXLOTS WITH FRACTIONAL SHARES 150 PAGE 24 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD JUNE 1, 2025 THROUGH JUNE 30, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 06/25/25 INTEREST RECEIVED 2,703.33 FHLMC MULTIFAMILY ST 3.244% 8/25/27 CUSIP 3137FBBX3 $0.00270/PV ON 1,000,000.00 PV DUE 6/25/25 06/25/25 INTEREST RECEIVED 7,302.08 FHLMC MULTIFAMILY ST 3.505% 3/25/29 CUSIP 3137FLN91 $0.00292/PV ON 2,500,000.00 PV DUE 6/25/25 06/25/25 INTEREST RECEIVED 7,841.25 FHLMC MULTIFAMILY ST 3.690% 1/25/29 CUSIP 3137FKZZ2 $0.00308/PV ON 2,550,000.00 PV DUE 6/25/25 06/25/25 INTEREST RECEIVED 6,285.00 FHLMC MULTIFAMILY ST 3.771% 12/25/28 CUSIP 3137FKUP9 $0.00314/PV ON 2,000,000.00 PV DUE 6/25/25 06/25/25 INTEREST RECEIVED 3,766.67 FHLMC SER K748 CMO 2.260% 1/25/29 CUSIP 3137H5YC5 $0.00188/PV ON 2,000,000.00 PV DUE 6/25/25 06/16/25 INTEREST RECEIVED 245.14 GM FINANCIAL ABS 3.100% 2/16/27 CUSIP 362585AC5 $0.00063/PV ON 94,894.43 PV DUE 6/16/25 151 PAGE 25 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD JUNE 1, 2025 THROUGH JUNE 30, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 06/16/25 16,216.15- PAID DOWN 16,216.15 16,212.76-3.39 GM FINANCIAL ABS 3.100% 2/16/27 CUSIP 362585AC5 06/16/25 INTEREST RECEIVED 5,294.58 GM FINANCIAL ABS 4.850% 12/18/28 CUSIP 36268GAD7 $0.00404/PV ON 1,310,000.00 PV DUE 6/16/25 06/16/25 INTEREST RECEIVED 6.82 GM FINANCIAL SECURIT 0.680% 9/16/26 CUSIP 362554AC1 $0.00002/PV ON 12,031.95 PV DUE 6/16/25 06/16/25 11,149.81- PAID DOWN 11,149.81 11,149.52-0.29 GM FINANCIAL SECURIT 0.680% 9/16/26 CUSIP 362554AC1 06/16/25 INTEREST RECEIVED 20.86 GM FINANCIAL SECURIT 1.260% 11/16/26 CUSIP 380146AC4 $0.00007/PV ON 19,869.36 PV DUE 6/16/25 06/16/25 10,786.41- PAID DOWN 10,786.41 10,785.47-0.94 GM FINANCIAL SECURIT 1.260% 11/16/26 CUSIP 380146AC4 06/16/25 INTEREST RECEIVED 24,529.25 HOME DEPOT INC 2.950% 6/15/29 CUSIP 437076BY7 INTEREST ON 1,663,000.000 UNITS 152 PAGE 26 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD JUNE 1, 2025 THROUGH JUNE 30, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 06/25/25 INTEREST RECEIVED 23,750.00 HOME DEPOT INC 4.750% 6/25/29 CUSIP 437076DC3 INTEREST ON 1,000,000.000 UNITS 06/18/25 INTEREST RECEIVED 2,349.54 HONDA AUTO RECE ABS 5.270% 11/20/28 CUSIP 437930AC4 $0.00439/PV ON 535,000.00 PV DUE 6/18/25 06/23/25 INTEREST RECEIVED 3,803.63 HONDA AUTO RECE ABS 5.670% 6/21/28 CUSIP 438123AC5 $0.00473/PV ON 805,000.00 PV DUE 6/21/25 06/16/25 INTEREST RECEIVED 115.84 HONDA AUTO RECEIVABL 1.000% 5/15/26 CUSIP 43815BAC4 $0.00016/PV ON 73,937.12 PV DUE 6/15/25 06/16/25 28,669.69- PAID DOWN 28,669.69 28,665.38-4.31 HONDA AUTO RECEIVABL 1.000% 5/15/26 CUSIP 43815BAC4 AT $400.4060 ON TRADE DATE 06/15/2025 TO SETTLE ON 06/16/2025 06/16/25 INTEREST RECEIVED 2,750.08 HYUNDAI AUTO ABS 5.410% 5/17/27 CUSIP 44934FAD7 $0.00451/PV ON 610,000.00 PV DUE 6/15/25 153 PAGE 27 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD JUNE 1, 2025 THROUGH JUNE 30, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 06/16/25 INTEREST RECEIVED 196.64 HYUNDAI AUTO REC ABS 2.220% 10/15/26 CUSIP 448977AD0 $0.00019/PV ON 106,290.92 PV DUE 6/15/25 06/16/25 40,389.59- PAID DOWN 40,389.59 40,388.04-1.55 HYUNDAI AUTO REC ABS 2.220% 10/15/26 CUSIP 448977AD0 AT $284.2197 ON TRADE DATE 06/15/2025 TO SETTLE ON 06/16/2025 06/16/25 INTEREST RECEIVED 2,178.92 JOHN DEERE OWNE ABS 5.090% 6/15/27 CUSIP 47800BAC2 $0.00208/PV ON 513,695.26 PV DUE 6/15/25 06/16/25 44,148.04- PAID DOWN 44,148.04 44,144.61-3.43 JOHN DEERE OWNE ABS 5.090% 6/15/27 CUSIP 47800BAC2 AT $260.0232 ON TRADE DATE 06/15/2025 TO SETTLE ON 06/16/2025 06/16/25 INTEREST RECEIVED 110.27 JOHN DEERE OWNER ABS 2.320% 9/16/26 CUSIP 47787JAC2 $0.00025/PV ON 57,037.30 PV DUE 6/15/25 06/16/25 10,443.88- PAID DOWN 10,443.88 10,441.57-2.31 JOHN DEERE OWNER ABS 2.320% 9/16/26 CUSIP 47787JAC2 AT $1,099.1620 ON TRADE DATE 06/15/2025 TO SETTLE ON 06/16/2025 154 PAGE 28 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD JUNE 1, 2025 THROUGH JUNE 30, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 06/16/25 INTEREST RECEIVED 675.87 JOHN DEERE OWNER ABS 3.740% 2/16/27 CUSIP 47800AAC4 $0.00103/PV ON 216,856.15 PV DUE 6/15/25 06/16/25 24,383.59- PAID DOWN 24,383.59 24,381.26-2.33 JOHN DEERE OWNER ABS 3.740% 2/16/27 CUSIP 47800AAC4 AT $470.7886 ON TRADE DATE 06/15/2025 TO SETTLE ON 06/16/2025 06/16/25 INTEREST RECEIVED 2,066.67 JOHN DEERE OWNER ABS 4.960% 11/15/28 CUSIP 47800RAD5 $0.00413/PV ON 500,000.00 PV DUE 6/15/25 06/16/25 INTEREST RECEIVED 5,454.17 MERCEDES-BENZ ABS 5.950% 11/15/28 CUSIP 58769FAC9 $0.00496/PV ON 1,100,000.00 PV DUE 6/15/25 06/05/25 INTEREST RECEIVED 31,395.00 NEW YORK LIFE GL FDG 4.600% 12/05/29 CUSIP 64952WFK4 INTEREST ON 1,365,000.000 UNITS 06/06/25 INTEREST RECEIVED 25,000.00 NEW YORK LIFE MTN 5.000% 6/06/29 CUSIP 64952WFG3 INTEREST ON 1,000,000.000 UNITS 06/09/25 670,000- SOLD 665,269.80 668,914.60-3,644.80- NORTHERN TRUST CORP 4.000% 5/10/27 CUSIP 665859AW4 AT $99.2940 ON TRADE DATE 06/06/2025 TO SETTLE ON 06/09/2025 US BANCORP INVESTMENTS, INC. 155 PAGE 29 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD JUNE 1, 2025 THROUGH JUNE 30, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 06/09/25 ACCRUED INTEREST ON SALE 2,158.89 NORTHERN TRUST CORP 4.000% 5/10/27 CUSIP 665859AW4 06/13/25 850,000- SOLD 831,912.00 827,449.50-4,462.50 NW MUTUAL GLBL MTN 0.800% 1/14/26 CUSIP 66815L2A6 AT $97.8720 ON TRADE DATE 06/12/2025 TO SETTLE ON 06/13/2025 PERSHING LLC 06/13/25 ACCRUED INTEREST ON SALE 2,814.44 NW MUTUAL GLBL MTN 0.800% 1/14/26 CUSIP 66815L2A6 06/13/25 1,000,000 PURCHASED 1,004,040.00- 1,004,040.00 NW MUTUAL GLOBAL MTN 4.600% 6/03/30 CUSIP 66815L2W8 AT $100.4040 ON TRADE DATE 06/12/2025 TO SETTLE ON 06/13/2025 J.P. MORGAN SECURITIES INC., - 06/13/25 ACCRUED INTEREST ON PURCHASE 1,277.78- NW MUTUAL GLOBAL MTN 4.600% 6/03/30 CUSIP 66815L2W8 06/04/25 1,000,000- SOLD 1,008,680.00 1,000,000.00-8,680.00 TORONTO BK MTN CONV 4.980% 4/05/27 CUSIP 89115A2W1 AT $100.8680 ON TRADE DATE 06/03/2025 TO SETTLE ON 06/04/2025 TORONTO DOMINION SECURITIES (U 06/04/25 ACCRUED INTEREST ON SALE 8,161.67 TORONTO BK MTN CONV 4.980% 4/05/27 CUSIP 89115A2W1 156 PAGE 30 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD JUNE 1, 2025 THROUGH JUNE 30, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 06/16/25 INTEREST RECEIVED 5,590.00 TOYOTA AUTO REC ABS 5.160% 4/17/28 CUSIP 89231FAD2 $0.00430/PV ON 1,300,000.00 PV DUE 6/15/25 06/16/25 33,726.8- PAID DOWN 33,726.80 33,589.78-137.02 TOYOTA AUTO REC ABS 5.160% 4/17/28 CUSIP 89231FAD2 06/18/25 INTEREST RECEIVED 7,790.63 TOYOTA MOTOR CREDIT 1.125% 6/18/26 CUSIP 89236TJK2 INTEREST ON 1,385,000.000 UNITS 06/30/25 INTEREST RECEIVED 52,812.50 U.S. TREASURY NOTES 3.250% 6/30/27 CUSIP 91282CEW7 INTEREST ON 3,250,000.000 UNITS 06/02/25 INTEREST RECEIVED 16,468.75 U.S. TREASURY NOTES 3.875% 11/30/27 CUSIP 91282CFZ9 INTEREST ON 850,000.000 UNITS 06/30/25 INTEREST RECEIVED 53,281.25 U.S. TREASURY NOTES 3.875% 12/31/27 CUSIP 91282CGC9 INTEREST ON 2,750,000.000 UNITS 06/04/25 2,000,000 PURCHASED 1,998,984.38- 1,998,984.38 U.S. TREASURY NOTES 4.000% 2/28/30 CUSIP 91282CGQ8 AT $99.9492 ON TRADE DATE 06/03/2025 TO SETTLE ON 06/04/2025 WACHOVIA CAPITAL MARKETS, LLC. 157 PAGE 31 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD JUNE 1, 2025 THROUGH JUNE 30, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 06/04/25 ACCRUED INTEREST ON PURCHASE 20,869.57- U.S. TREASURY NOTES 4.000% 2/28/30 CUSIP 91282CGQ8 06/30/25 INTEREST RECEIVED 42,500.00 U.S. TREASURY NOTES 4.250% 6/30/29 CUSIP 91282CKX8 INTEREST ON 2,000,000.000 UNITS 06/16/25 INTEREST RECEIVED 54,687.50 U.S. TREASURY NOTES 4.375% 12/15/26 CUSIP 91282CJP7 INTEREST ON 2,500,000.000 UNITS 06/30/25 INTEREST RECEIVED 96,250.00 U.S. TREASURY NOTES 4.375% 12/31/29 CUSIP 91282CMD0 INTEREST ON 4,400,000.000 UNITS 06/02/25 INTEREST RECEIVED 4,218.75 US TREASURY NOTE 0.375% 11/30/25 CUSIP 91282CAZ4 INTEREST ON 2,250,000.000 UNITS 06/06/25 0.01 SHARE ADJUSTMENT VR FHLMC MULTIFAMI 3.334% 8/25/25 CUSIP 3137BLW95 06/25/25 INTEREST RECEIVED 2,236.78 VR FHLMC MULTIFAMI 3.334% 8/25/25 CUSIP 3137BLW95 $0.00278/PV ON 415,308.72 PV DUE 6/25/25 06/25/25 415,308.72- PAID DOWN 415,308.72 445,094.14-29,785.42- VR FHLMC MULTIFAMI 3.334% 8/25/25 CUSIP 3137BLW95 158 PAGE 32 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD JUNE 1, 2025 THROUGH JUNE 30, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 06/25/25 389,770.2- SOLD 388,308.56 417,724.03-29,415.47- VR FHLMC MULTIFAMI 3.334% 8/25/25 CUSIP 3137BLW95 AT $99.6250 ON TRADE DATE 06/06/2025 TO SETTLE ON 06/25/2025 TORONTO DOMINION SECURITIES (U 06/25/25 ACCRUED INTEREST ON SALE 360.98 VR FHLMC MULTIFAMI 3.334% 8/25/25 CUSIP 3137BLW95 06/10/25 1,365,000 PURCHASED 1,364,977.34- 1,364,977.34 WELLS FARGO CARD ABS 4.340% 5/15/30 CUSIP 92970QAJ4 AT $99.9983 ON TRADE DATE 06/03/2025 TO SETTLE ON 06/10/2025 WACHOVIA CAPITAL MARKETS, LLC. TRANSFER RECEIPTS 06/02/25 ADDITION TO ACCOUNT 26,444.29 TRANSFER FROM INCOME 06/05/25 ADDITION TO ACCOUNT 18,687.10 TRANSFER FROM INCOME 06/06/25 ADDITION TO ACCOUNT 26,064.58 TRANSFER FROM INCOME 06/09/25 ADDITION TO ACCOUNT 2,158.89 TRANSFER FROM INCOME 06/13/25 ADDITION TO ACCOUNT 566.42 TRANSFER FROM INCOME 159 PAGE 33 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD JUNE 1, 2025 THROUGH JUNE 30, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 06/16/25 ADDITION TO ACCOUNT 117,261.21 TRANSFER FROM INCOME 06/17/25 ADDITION TO ACCOUNT 5,294.58 TRANSFER FROM INCOME 06/18/25 ADDITION TO ACCOUNT 10,140.17 TRANSFER FROM INCOME 06/23/25 ADDITION TO ACCOUNT 3,803.63 TRANSFER FROM INCOME 06/25/25 ADDITION TO ACCOUNT 73,362.06 TRANSFER FROM INCOME 06/26/25 ADDITION TO ACCOUNT 2,779.29 TRANSFER FROM INCOME 06/30/25 ADDITION TO ACCOUNT 244,843.75 TRANSFER FROM INCOME INVESTMENT MANAGEMENT EXPENSES 06/05/25 INVESTMENT MGMT FEE 10,358.71- PAID TO CHANDLER ASSET MANAGEMENT INC INV 2505CUPERTIN MAY 2025 CITY OF CUPERTINO TRANSFER DISBURSEMENTS 06/02/25 TRANSFER TO PRINCIPAL 26,444.29- 06/05/25 TRANSFER TO PRINCIPAL 18,687.10- 06/06/25 TRANSFER TO PRINCIPAL 26,064.58- 160 INVESTMENT AND INSURANCE PRODUCTS ARE:·NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR ANY FEDERAL GOVERNMENT AGENCY·NOT A DEPOSIT, OBLIGATION OF, OR GUARANTEED BY ANY BANK OR BANKING AFFILIATE·SUBJECT TO INVESTMENT RISKS AND MAY LOSE VALUE, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED PAGE 34 STATEMENT OF TRANSACTIONS CITY OF CUPERTINO FOR THE PERIOD JUNE 1, 2025 THROUGH JUNE 30, 2025 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ STATEMENT OF TRANSACTIONS REALIZED DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 06/09/25 TRANSFER TO PRINCIPAL 2,158.89- 06/13/25 TRANSFER TO PRINCIPAL 566.42- 06/16/25 TRANSFER TO PRINCIPAL 117,261.21- 06/17/25 TRANSFER TO PRINCIPAL 5,294.58- 06/18/25 TRANSFER TO PRINCIPAL 10,140.17- 06/23/25 TRANSFER TO PRINCIPAL 3,803.63- 06/25/25 TRANSFER TO PRINCIPAL 73,362.06- 06/26/25 TRANSFER TO PRINCIPAL 2,779.29- 06/30/25 TRANSFER TO PRINCIPAL 244,843.75- ================================================================================================================= ENDING BALANCE 0.00 172,701,301.96 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 161 CITY OF CUPERTINO PARS Post-Employment Benefits Trust 6/1/2025 to 6/30/2025 Kristina Alfaro Director of Administrative Services City of Cupertino 10300 Torre Ave. Cupertino, CA 95014 Account Summary Source 6/1/2025 Contributions Earnings Expenses Distributions Transfers 6/30/2025 OPEB 1001 $41,365,164.41 $0.00 $1,379,943.97 $11,066.74 $0.00 $0.00 $42,734,041.64 PENSION 1002 $23,530,746.70 $0.00 $796,410.48 $6,297.21 $0.00 $0.00 $24,320,859.97 Totals $64,895,911.11 $0.00 $2,176,354.45 $17,363.95 $0.00 $0.00 $67,054,901.61 Investment Selection Source OPEB PENSION Investment Objective Source OPEB PENSION Investment Return Source 1-Month 3-Months 1-Year 3-Years 5-Years 10-Years OPEB 3.34%8.21%12.80%12.61%8.94%7.12%6/21/2010 PENSION 3.38%8.19%12.63%12.53%8.87%-3/26/2019 Information as provided by US Bank, Trustee for PARS; Not FDIC Insured; No Bank Guarantee; May Lose Value Headquarters - 4350 Von Karman Ave., Suite 100, Newport Beach, CA 92660 800.540.6369 Fax 949.250.1250 www.pars.org Account balances are inclusive of Trust Administration, Trustee and Investment Management fees Annualized Return Investment Return: Annualized rate of return is the return on an investment over a period other than one year multiplied or divided to give a comparable one-year return. Past performance does not guarantee future results. Performance returns may not reflect the deduction of applicable fees, which could reduce returns. Information is deemed reliable but may be subject to change. Individual account based on US Bank Balanced MM. Dual goals are to provide a moderate amount of current income with moderate capital growth. Income production and longer term growth of capital. Account Report for the Period Balance as of City of Cupertino - OPEB Balance as of Individual account based on US Bank Balanced MM. Dual goals are to provide a moderate amount of current income with moderate capital growth. Income production and longer term growth of capital. City of Cupertino - PEN Plan's Inception Date 162 163 CITY OF CUPERTINO Agenda Item 25-14190 Agenda Date: 7/28/2025 Agenda #: 6. Subject:INFORMATIONAL ITEM Receive the Internal Audit and Fraud, Waste, and Abuse programs update Receive the Internal Audit and Fraud, Waste, and Abuse programs update Presenter: Baker Tilly 4:50(10) CITY OF CUPERTINO Printed on 7/24/2025Page 1 of 1 powered by Legistar™164 July 21, 2025 To: City of Cupertino Audit Committee From: Moss Adams LLP Subject: Internal Audit Status Report April 22 through July 21, 2025 _____ FY24-25 INTERNAL AUDIT PROGRAM GRANTS MANAGEMENT INTERNAL CONTROLS REVIEW SPECIAL REVENUE FUND PROCESS REVIEW RECOMMENDATION VALIDATION PROCESS ESTABLISHMENT Objective Assess the internal controls in place over the City’s grants management activities (including applications, review, administration, and reporting). Document the process used for special revenue fund accounting, identify gaps compared to best practices, and conduct testing of prior years’ accounting. Inventory prior internal and external audit recommendations, collaborate with City staff to develop a tracking mechanism and process to report and validate recommendation implementation. Schedule April through August 2025 August 2024 through July 2025 July 2024 through June 2025 Activities for This Period Completed kickoff, analysis, interviews, preliminary observations, and testing plan. Requested grants listings and listings of subrecipients. Completed analysis and interviews, developed draft and final reports. Developed initial tracking spreadsheet, requested documentation to begin validating recommendations City staff report as implemented, and reviewed documentation to determine status. Activities for Next Period Conduct detailed testing and develop draft and final reports. None Continue to validate recommendations throughout Ongoing Internal Audit Services for FY 25-26. Issues None None None FY25-26 INTERNAL AUDIT PROGRAM COUNCIL -WIDE POLICY REVIEW INVENTORY CITY -WIDE INTERNAL CONTROL REVIEW INVESTMENT/CASH FLOW POLICY REVIEW/RECOMMENDATION ONGOING INTERNAL AUDIT SERVICES Objective Review and provide recommendations to align council policies with best practices. Conduct a review of the City’s internal controls framework in key areas that are deemed important to protecting City assets and resources. Review and provide best practice recommendations over City’s investment/cash flow policy. Attend Audit Committee and Council meetings, prepare status reports, manage internal audit program, and monitor FWA hotline. Schedule TBD – depending on City management August through November 2025 August through early October 2025 July 2025 through June 2026 Total Budget $40,000 $45,000 $10,000 $25,000 Activities for Next Period TBD – depending on City management Initiate project Initiate project, review policy and develop best practices Continue to monitor FWA hotline, perform validation continuation, and provide ongoing support to City. 165 \ FRAUD, WASTE, AND ABUSE HOTLINE STATISTICS: QUARTERLY Complaint Type Complaints Received This Quarter Under Review Referred to Appropriate City Official(s) Closed Open Compliance & Ethics 3 2 3 1 2 Fraud 0 0 0 0 0 Employment Matters 1 1 1 1 1 HOTLINE STATISTICS: LIFETIME (OCTOBER 2022 -PRESENT) OUTSTANDING R EPORTS – DAYS OPEN Total Reports 37 Open Reports Days Outstanding Reports Closed 27 Report 2000302663 515 Reports Open 10 Report 2000309461 493 Report 2000311746 485 Report 2000320154 458 Report 2000320491 456 Report 2000423152 130 Report 2000435031 93 Report 2000448473 55 Report 2000459484 22 Report 2000465974 2 166 City of Cupertino- Audit Recommendations Tracking Report 7/18/2025 ( A) ( B)( C)( D) Reports Total Recommendations Open Recommendations (Not Yet Completed by City) Validated Recommendations (By Moss Adams) Reportable Recommendations (Newly validated since last summary) Total 78 30 48 3 Legend: 167 Item No.Finding Recommendation Moss Adams Determination Notes 48C 2023 ELA-23 making. There are opportunities to increase the effectiveness of some of these naming convention for commission versus committee.names and considered streamlining and ultimately didn’t 55 2023 LECA-23 skilled labor documentation, as required by the Contract terms. For example, the City should ensure that all Skilled and Trained Workforce documentation is level of detail required to ensure compliance with Public Contract Code. Compliance with this requirement should be tracked by the City and Project Management for compliance. includes language requiring the contractor to submit certified payroll. In addition, staff reported the City has a process in place to get certified payroll where staff review and save showed us examples of these folders in a Teams meeting. These two controls are sufficient to meet this objective. Additional Note: We will note that although this finding is addressed, ideally the City should track this documentation to assess if design build entities consistently comply with this contract requirement. 57 2023 LECA-23 and material supplier once payment is made to support the City ensuring all parties are being paid timely and there are payment issues which may be an indicator of performance issues. At the end of a subcontractor’s work, or at the Project’s completion, conditional waivers for all subcontractors should be obtained to validate full payment for performance of the Contract and mitigate potential exposures for the City. Additionally, the City should consider updating policies and procedures to develop a methodology with project management personnel to determine which subcontractors are required to provide conditional waivers based on initial subcontracting plan including attributes such as contract size and or scope complexity. Conditions, section 8.2 (A) that if requested, each application Release Upon Progress Payment. In addition, staff reported the City does collect conditional waivers as part of the payment review process and they are saved in a central meeting. 168 CITY OF CUPERTINO Agenda Item 25-14191 Agenda Date: 7/28/2025 Agenda #: 7. Subject:ACTION ITEM Discuss Audit Committee Duties, Powers, and Responsibilities Provide recommendation (if any) to City Council for an Audit Committee municipal code Government Code Section 2.88.100 update Presenter: Jonathan Orozco, Finance Manager 5:00(25) CITY OF CUPERTINO Printed on 7/24/2025Page 1 of 1 powered by Legistar™169 AUDIT COMMITTEE STAFF REPORT Meeting: July 28, 2025 Subject Discuss Audit Committee Duties, Powers, and Responsibilities Recommended Action 1. Provide recommendation (if any) to City Council for an Audit Committee municipal code Government Code Section 2.88 update; or 2. Request Baker Tilly to conduct a review and report back to Audit Committee and City Council Discussion Background On May 20, 2025, City Council directed the Audit Committee to consider amending its scope of review for recommendation to the City Council. On April 28, 2025, the Audit Committee requested Baker Tilly, previously Moss Adams, to discuss the Audit Committee’s scope based on the Government Finance Officers Association (GFOA) Best Practices, as the Audit Committee wanted to include the review of financial policies into the duties, powers, and responsibilities. The Audit Committee's duties were last updated in February 2023 following a broader review of City commissions and committees. At that time, City Council approved several refinements, including adjusting the review frequency of the Treasurer’s report from monthly to quarterly. Municipal Code Section 2.88.100 defines the powers and functions of the Audit Committee. The current duties (as updated in 2023) are as follows: A. To review the annual audit report and management letter; B. To recommend appointment of auditors; C. To review the Quarterly Treasurer’s investment report; D. To recommend a budget format; E. To review City investment policies and internal controls of such policies; F. To recommend appointment of internal auditors; G. To review internal audit reports; H. To review quarterly Fraud, Waste, and Abuse Program reports. 170 (Ord. 23-2247, § 1 (part), 2023; Ord. 22-2243, § 1, 2022; Ord. 20- 2208, § 1, 2020; Ord. 1679, § 1 (part), 1995) These duties give the Audit Committee a broad oversight role spanning external financial reporting, internal controls, investment oversight, budgeting practices, and internal audit activities. Since the February 2023 code update, the Audit Committee has been operating under this structure and meeting quarterly (with special meetings as needed) to carry out its responsibilities. The current composition of the Committee (two Council members and two to three public members) and meeting frequency are designed to support meaningful review and discussion of these oversight areas. GFOA Best Practices for Audit Committees GFOA emphasizes the crucial role of audit committees in public sector financial governance. According to GFOA, an audit committee’s core responsibility is to provide independent review and oversight of a government’s financial reporting processes, internal controls, and the independent audit function. By effectively carrying out its duties, an audit committee helps ensure that management maintains a sound system of internal controls and reliable financial practices. In other words, the audit committee serves as a practical mechanism for the governing body to monitor financial integrity on behalf of the public. Best practice guidance from GFOA outline several common functions of an effective audit committee in government, many of which align with the City’s current Audit Committee duties. These include: overseeing the external audit process (selection of auditors, review of audit results), monitoring the implementation of audit recommendations, reviewing the effectiveness of internal controls and risk management procedures, and providing a forum for auditors to communicate concerns outside of management channels. GFOA recommends that every government formally establish an audit committee with a clear charter, and that the committee be directly involved in the oversight of the external auditors (including appointment and compensation) to reinforce auditor independen ce. The City’s practice of having the Audit Committee recommend the hiring of both external and internal auditors is consistent with this guidance. Notably, GFOA’s best practices stress the importance of financial oversight beyond the annual audit. Audit committees are encouraged to monitor and review key financial governance practices on an ongoing basis. This can extend to periodically reviewing the organization’s financial policies and procedures to ensure they are comprehensive and being adhered to. For example, one advisory for audit committees highlights the value of reviewing financial policies (such as policies on investments, internal controls, conflicts of interest, whistleblower programs, etc.) as part of the committee’s role in ensuring integrity and compliance. Regularly examining financial policy frameworks can help the committee verify that the City’s financial management practices remain robust and aligned with best practices. The City currently utilizes Baker Tilly to conduct these reviews and procedures. 171 In summary, the City’s Audit Committee duties as currently defined largely reflect the roles promoted by GFOA, focusing on audit oversight, internal control, and financial reporting accountability. Sustainability Impact No sustainability impacts. Fiscal Impact No fiscal impact. City Work Program Item/Description None City Council Goal Fiscal Strategy California Environmental Quality Act Not applicable. _____________________________________ Prepared by: Jonathan Orozco, Finance Manager Reviewed by: Kristina Alfaro, Director of Administrative Services and City Treasurer Approved for Submission by: Tina Kapoor, Interim City Manager Attachments: A – Audit Committee Work Plan and duties and responsibilities 2025 B – Chapter 2.88 Audit Committee 172 January 27, 2025 Regular Meeting February 18, 2025 Special Meeting April 28, 2025 Regular Meeting May 12, 2025 Special Meeting July 28, 2025 Regular Meeting October 27, 2025 Regular Meeting November/December 2025 Special Meeting Approve Prior Meeting Minutes Approve Prior Meeting Minutes Approve Prior Meeting Minutes Quarterly Treasurerʹs Investment Report for Quarter Ending March 31, 2025 Approve Prior Meeting Minutes Approve Prior Meeting Minutes Approve Prior Meeting Minutes OPEB & Pension Trust Performance Report for Quarter Ending December 31, 2024 Moss Adams Status Report Update Appoint Audit Committee Chair and Vice Chair OPEB & Pension Trust Performance Report for Quarter Ending June 30, 2025 OPEB & Pension Trust Performance Report for Quarter Ending September 30, 2025 Review of FY 2024‐25 ACFR and Supplemental Reports Quarterly Treasurerʹs Investment Report for Quarter Ending December 31, 2024 Baker Tilly ‐ Budget Format Review OPEB & Pension Trust Performance Report for Quarter Ending March 31, 2025 Quarterly Treasurerʹs Investment Report for Quarter Ending June 30, 2025 Quarterly Treasurerʹs Investment Report for Quarter Ending September 30, 2025 Internal Audit and Fraud, Waste, and Abuse Programs Update Internal Audit and Fraud, Waste, and Abuse Programs Update Internal Audit and Fraud, Waste, and Abuse Program Update Internal Audit and Fraud, Waste, and Abuse Program Update Annual Review of City Investment Policy Fiscal Year 2024‐25 ACFR Interim Testing Update Annual Review of OPEB and Pension Trust Investment Policies Internal Audit Program Audit Committee Duties, Powers, and Responsibilities ‐ (5/20/25 CC meeting) Fiscal Year 2024‐25 ACFR Update FY 23‐24 Agreed Upon Procedures (AUP) Review ‐ GANN Limit, Investment Policy, Storm Drain Budget Format Review Update and Subcommittee Budget Format Review (Tentative) Updated Budget Format Implementation Action Plan (IAP) Special Revenue Fund Audit Update Summary of Duties – Powers – Responsibilities of Cupertino Audit Committee Source: Cupertino, CA Municipal Code, Chapter 2.88.100: Audit Committee The powers and functions of the Audit Committee shall be as follows: To review the annual audit report and management letter; To recommend appointment of auditors; To review the quarterly Treasurer’s Investment report; To recommend a budget format; To review City investment policies and internal controls of such policies. To recommend appointment of internal auditors; To review internal audit reports. To review quarterly Fraud, Waste, and Abuse Program reports. (Ord. 22-2243 § 1, 2023; Ord. 20-2208, § 1, 2020; Ord. 1679, § 1 (part), 1995) CITY OF CUPERTINO ‐ AUDIT COMMITTEE 2025 SCHEDULE AND WORK PLAN 17 3 CHAPTER 2.88: AUDIT COMMITTEE 2.88.010 Established–Composition. A. The Audit Committee of the City is established. The Audit Committee shall consist of five members as follows: 1. Two City Council members; 2. A minimum of Two and a maximum of three at large members who are not officials or employees of the City nor cohabit with, as defined by law, nor be related by blood or marriage to, any member of the committee, the City Manager or the staff person or persons assigned to the committee. (Ord. 1913, (part), 2003; Ord. 1874, § 1 (part), 2001; Ord. 1679, § 1 (part), 1995) 2.88.020 At Large Member–Qualifications. An Audit Committee at large member is not required to be a Cupertino resident. In selecting an at large member, the City Council shall give priority to individuals who have substantial accounting, audit, or investment experience, preferably in connection with a governmental agency. (Ord. 1913, (part), 2003; Ord. 1874, § 1 (part), 2001; Ord. 1679, § 1 (part), 1995) 2.88.030 Terms of Office. A. Audit Committee members serve at the pleasure of the City Council. The term of office of the members of the Audit Committee shall be for four years commencing on the date of their respective appointments to the Audit Committee and shall end on January 30th of the year the terms are due to expire. No Audit Committee member shall serve more than two consecutive terms unless he or she has been appointed to the committee to fill an unexpired term of less than two years. B. The appointment, reappointment and rules governing incumbent members of the Audit Committee are governed by the Resolution of the City Council which governs advisory bodies. (Ord. 18-2180, § 10 (part), 2018; Ord. 1974, § 1, 2006; Ord. 1679, § 1 (part), 1995) 2.88.040 Members–Vacancy Prior to Expiration of a Term. 174 If a vacancy occurs other than by expiration of a term, it shall be filled by the City Council’s appointment for the unexpired portion of the term. (Ord. 1679, § 1 (part), 1995) 2.88.050 Chairperson. The committee shall elect its chairperson and vice chairperson from among its members and shall appoint a secretary. Terms of the chairperson and vice chairperson shall be for one year. Upon approval of the City Council, the City Manager may appoint a secretary who need not be a member of the committee. (Ord. 2015, § 1, 2008; Ord. 1679, § 1 (part), 1995) 2.88.060 Meetings. A. The Audit Committee shall establish a regular time and place of meeting and rules of conduct thereof and shall hold at least one regular meeting quarterly. B. A majority of the Audit Committee shall constitute a quorum for the purpose of transacting the business of the committee. (Ord. 1679, § 1 (part), 1995) 2.88.070 Compensation–Expenses. Members shall serve on the Audit Committee without compensation, but all necessary expenses reasonably incurred by them while acting in their official capacity shall be paid by appropriate action of the City Council. (Ord. 1679, § 1 (part), 1995) 2.88.080 Majority Vote Required. A majority vote of the quorum is required to approve a recommendation on any matter that is presented to the committee which requires a vote. (Ord. 1679, § 1 (part), 1995) 2.88.090 Records. 175 The committee shall keep an accurate record of its proceedings and transactions and shall render such reports to the City Council and Planning Commission as may be required. These records shall be filed with the City Clerk. (Ord. 18-2180, § 10 (part), 2018; Ord. 1679, § 1 (part), 1995) 2.88.100 Duties–Powers–Responsibilities. The powers and functions of the Audit Committee shall be as follows: A. To review the annual audit report and management letter; B. To recommend appointment of auditors; C. To review the Quarterly Treasurer’s investment report; D. To recommend a budget format; E. To review City investment policies and internal controls of such policies; F. To recommend appointment of internal auditors; G. To review internal audit reports; H. To review quarterly Fraud, Waste, and Abuse Program reports. (Ord. 23-2247, § 1 (part), 2023; Ord. 22-2243, § 1, 2022; Ord. 20- 2208, § 1, 2020; Ord. 1679, § 1 (part), 1995) 2.88.110 City Staff Assistance. The Audit Committee shall have available to it such assistance of City staff as may be required to perform its functions, the staff assignments and administrative procedures to be under the general direction and supervision of the Director of Administrative Services. (Ord. 1679, § 1 (part), 1995) 2.88.120 Procedural Rules. The Audit Committee may adopt from time to time such rules of procedure as it may deem necessary to properly exercise its powers and duties. Such rules shall be subject to approval by the Council before becoming effective. All such rules shall be kept on file 176 with the chairperson of the Audit Committee, the Mayor, and the City Clerk and a copy thereof shall be furnished to any person upon request. (Ord. 1679, § 1 (part), 1995) 2.88.130 Effect. Nothing in this chapter shall be construed as restricting or curtailing any powers of the City Council or City officers. (Ord. 1679, § 1 (part), 1995) 177 CITY OF CUPERTINO Agenda Item 25-14192 Agenda Date: 7/28/2025 Agenda #: 8. Subject:ACTION ITEM Special Revenue Fund Process Audit Update Receive Special Revenue Fund Process Audit Update and forward to City Council Presenter: Baker Tilly 5:25(15) CITY OF CUPERTINO Printed on 7/24/2025Page 1 of 1 powered by Legistar™178 This report is intended for the internal use of City of Cupertino , and may not be provided to, used, or relied upon by any third parties. Proprietary & Confidential PRELIMINARY REPORT CITY OF CUPERTINO SPECIAL REVENUE FUND PROCESS REVIEW June 10, 2025 Moss Adams LLP 999 Third Avenue, Suite 2800 Seattle, WA 98104 (206) 302-6500 179 Special Revenue Fund Process Review FOR INTERNAL USE OF CITY OF CUPERTINO ONLY Table of Contents Executive Summary 1 A. Introduction 1 B. Summary of Observations and Recommendations 1 Background, Scope, and Methodology 2 A. Commendation 4 Summary of Special Revenue Fund Expenditure Controls 5 Summary of Testwork 6 Observations and Recommendations 8 A. Process Documentation and Training 8 Additional Process Improvement Opportunities 9 Process Map: Invoice Processing 11 180 Special Revenue Fund Process Review | 1 FOR INTERNAL USE OF CITY OF CUPERTINO ONLY I. EXECUTIVE SUMMARY A. INTRODUCTION As part of the City of Cupertino’s (the City’s) fiscal year (FY) 24–25 internal audit program, Moss Adams LLP (Moss Adams) conducted a special revenue fund process review. The purpose of this engagement was to document the process used for special revenue fund accounting, identify gaps compared to best practices, and conduct testing of prior years’ accounting. We conducted this engagement between August 2024 and April 2025 using a four-phased approach consisting of project initiation and management, fact-finding, analysis, and reporting. B. SUMMARY OF OBSERVATIONS AND RECOMMENDATIONS Observations and recommendations are summarized below. OBSERVATIONS AND RECOMMENDATIONS PROCESS 1. Observation Processes and controls exist to ensure only allowable expenditures are recorded to special revenue funds, but some processes and controls are not well-documented. Gaps in documentation, staff knowledge, and training led to miscoding expenditures to a special revenue fund in FY24. Recommendation ● Verify the processes and controls that ensure only allowable expenditures are recorded to special revenue funds are well-documented and easily replicable. ● Conduct and document staff training on permitted uses of all special revenue funds. 181 Special Revenue Fund Process Review | 2 FOR INTERNAL USE OF CITY OF CUPERTINO ONLY II. BACKGROUND, SCOPE, AND METHODOLOGY Moss Adams conducted this special revenue fund process review for the City as part of its FY24–25 internal audit program. Special revenue funds are established to account for the proceeds of specific revenue sources that are legally restricted for expenditures for particular purposes. As of FY24–25, the City tracks 10 designated special revenue funds; some of these funds are grouped for Annual Comprehensive Financial Report (ACFR) purposes, as shown in the table below. CITY OF CUPERTINO SPECIAL REVENUE FUNDS ACFR Grouping Special Revenue Fund with General Ledger Fund Code Purpose of Fund Storm Drain Improvement Special Revenue Fund 210 Storm Drain Improvement Accounts for the construction and maintenance of storm drain facilities, including drainage and sanitary sewer facilities. Projects are funded by the Capital Reserve. 215 Storm Drain Accounts for revenues from developers as a result of connections to the storm drainage sewer system. Environmental Management/Clean Creeks Special Revenue Fund 230 Environmental Management/Clean Creek/Storm Drain Accounts for activities related to operating the Non- Point Source Pollution Program. Revenues are from parcel taxes. Housing Development Special Revenue Fund 260 Community Development Block Grant (CDBG) Accounts for the Federal Housing and CDBG Program activities. CDBG is a federally funded program for housing assistance and public improvements. 261 Housing and Community Development (HCD) Loan Rehab Accounts for activities related to rehabilitation loans. 265 Below Market Rate (BMR) Housing Accounts for activities related to the BMR Housing Program. Revenues include BMR housing mitigation fees collected from developers to mitigate the impact of housing needs. Monies in this fund are governed by the program’s rules. Transportation Special Revenue Fund 270 Transportation Accounts for the City’s gas tax, vehicle registration fees, and grant revenues and expenditures related to the maintenance and construction of City streets. All revenue in this fund is restricted exclusively for street and road purposes, including related engineering and administrative expenditures. Traffic Impact Special Revenue Fund 271 Traffic Impact Accounts for development impact fees to ensure that new development and redevelopment projects pay their “fair share” to mitigate traffic impacts. 182 Special Revenue Fund Process Review | 3 FOR INTERNAL USE OF CITY OF CUPERTINO ONLY CITY OF CUPERTINO SPECIAL REVENUE FUNDS ACFR Grouping Special Revenue Fund with General Ledger Fund Code Purpose of Fund Park Dedication Special Revenue Fund 280 Park Dedication Accounts for the activity granted by the business and professions code of the State of California in accordance with the open space and conservation element of the City’s General Plan. Revenues are restricted for the acquisition, improvement, expansion, and implementation of the City’s parks and recreation facilities. 281 Tree Accounts for revenues from in-lieu tree replacement fees and tree damage and removal fees. The revenues are transferred to the Street Tree Maintenance Program to pay for new and replacement trees. Our project objectives for this engagement included the following: • Document the process used for special revenue fund accounting • Identify gaps compared to best practices • Conduct testing of prior years’ accounting • Develop actionable recommendations for consideration by management This analysis was informed by staff interviews, document reviews, research on industry best practices, and testing of a sample of expenditure transactions. The study was conducted between August 2024 and April 2025, and consisted of four major phases: 1. Project Initiation and Management: This phase concentrated on comprehensive project planning and project management, including setting the scope, identifying staff to interview and documents to review, communicating the plan, and establishing a game plan for execution. 2. Fact-Finding: This phase included staff interviews, document reviews, research on industry best practices, and testing of a sample of expenditure transactions. We worked with City staff to obtain the most currently available information and insights. ○ Staff Interviews: We conducted interviews with six staff members. We included representation from City leadership and departments such as Public Works and Community Development. ○ Document Review: We reviewed documents, including policies and procedures, City resolutions and other regulatory documents, and prior reports pertaining to special revenue funds. ○ Industry Best Practice Research: Based on the opportunities for improvement identified, we conducted research to ascertain industry standards and best practices. ○ Testing of Expenditure Transactions: We obtained expenditure details for FY23–24, validated the completeness of the expenditure population, and judgmentally selected a sample of 22 transactions for testwork. 183 Special Revenue Fund Process Review | 4 FOR INTERNAL USE OF CITY OF CUPERTINO ONLY 3. Analysis: This phase served as the assessment portion of the project. Based on the information gathered, we evaluated the importance, impact, and scope of our observations in order to draw conclusions and develop process recommendations. 4. Reporting: This phase concluded the project. We reviewed draft observations and recommendations with City leadership to validate facts and confirm the practicality of recommendations. A. COMMENDATION Although the focus of the engagement was to identify areas that need improvement within the special revenue fund process, it is important to note the areas of strength that can be leveraged for further improvement within the City. The Moss Adams team would like to note the following commendation: • Commitment to Continuous Improvement: In February 2024, the City was informed of an issue regarding the miscoding of transactions to the BMR Housing Fund, specifically transactions involving attorney fees. The City took immediate steps to implement additional controls for BMR fund invoice processing to prevent similar miscoding in the future. Additional controls included requiring a Director-level departmental review on invoices coded to the BMR fund. In addition, City staff conducted a review of all transactions processed to the BMR Housing Fund from 2019 to 2024, and Community Development held a number of meetings to educate department personnel on the process for recording and regulations related to BMR expenditures. These actions demonstrate a commitment to continuous process improvement and strengthening controls by Community Development and Finance. We would like to commend City staff for their willingness to assist us in this assessment process. This commendation, coupled with our observation and recommendations, provide an overview of areas of strengths and weaknesses that can help improve operations and reduce risk at the City. 184 Special Revenue Fund Process Review | 5 FOR INTERNAL USE OF CITY OF CUPERTINO ONLY III. SUMMARY OF SPECIAL REVENUE FUND EXPENDITURE CONTROLS Accounts payable controls, budgeting controls, payroll controls, communication (particularly between departments and Finance), and staff education are critical to ensure that special revenue funds finance only the particular activities for which they are designated. We noted that expenditures are posted against special revenue funds by the City in the following ways: • Accounts payable/invoice processing • Quarterly allocation of Citywide costs (cost allocation) • Payroll • Transfers between funds (transfers out) A summary of controls within each of these processes is described in the table below. In addition, a map of the invoice processing process is included in Section VII of this report. EXPENDITURE SOURCE DESCRIPTION OF CONTROLS Invoice Processing Invoices are processed and coded at the department level and subject to three levels of review after coding: departmental supervisor review (at the individual invoice level), AP review (at the individual invoice level), and Finance Manager review (at the payment batch level). See Section VII of this report for a process map. Additionally, expenses are budgeted by fund annually and budget-to-actuals are monitored by departments as well as by Finance. Within the invoice coding process, the system compares the expense that the department is trying to encumber against the budget for that string. Finance override is needed for transfers between account strings within each fund; departments cannot transfer budgeted amounts between funds or exceed budgeted encumbrances. Cost Allocation A Cost Allocation Plan is created by Finance to allocate Citywide central service and administrative expenses to departments/funds based on a number of allocation formulas/bases. Cost allocation expense is posted quarterly. Finance reviews and updates allocation formulas periodically to ensure that allocations are fair and not charged to funds that cannot be used for administrative expenses. Payroll Employee timesheets are reviewed and approved by supervisors prior to payroll processing. Each employee’s time is designated to a fund (or funds) during the annual budgeting process, based on employee job duties. Payroll budget-to-actuals are monitored by departments as well as by Finance. Transfers Out In most cases, transfers are included within budget modification resolutions, which are prepared by Finance and approved by City Council. 185 Special Revenue Fund Process Review | 6 FOR INTERNAL USE OF CITY OF CUPERTINO ONLY IV. SUMMARY OF TESTWORK Moss Adams obtained expenditure detail for FY24, validated the completeness of the expenditure population, and judgmentally selected a sample of 22 transactions for testwork. This sample included 17 transfer and expenditure transactions, three payroll transactions, and two cost allocation transactions. A summary of testwork results by special revenue fund grouping is presented below. CITY OF CUPERTINO SPECIAL REVENUE FUNDS ACFR Grouping Special Revenue Fund with General Ledger Fund Code Summary of Expenditure and Transfer Testwork Summary of Payroll Testwork Summary of Cost Allocation Testwork Storm Drain Improvement Special Revenue Fund 210 Storm Drain Improvement We judgmentally selected and tested one transfer and two expenditure transactions posted to these funds during FY24. Transfers and expenditures were supported by documentation and approvals. Transactions appeared allowable based on Municipal Code 3.36.010 and 3.36.170 and associated City resolutions. We noted no payroll expenses posted to these funds during FY24. We noted no quarterly cost allocations allotted to these funds during FY24. 215 Storm Drain Environmental Management/Clean Creeks Special Revenue Fund 230 Environmental Management/Clean Creek/Storm Drain An agreed upon procedure (AUP) engagement is completed each year by an independent third party to assess the allowability of expenditures, including payroll transactions, posted to this fund. We reviewed the most recent four years of finalized AUP reports and noted no exceptions. Expenditure allowability is guided by Municipal Code 3.38.010 and 3.38.160. Housing Development Special Revenue Fund 260 Community Development Block Grant We judgmentally selected and tested one transfer and four expenditure transactions posted to funds 260 and 265 during FY24. We noted no expenditures or transfers out from fund 261 during FY24. Transfers and expenditures were supported by documentation and approvals. Four of five transactions appeared allowable based on the CDBG Annual Action Plan and the BMR Housing Mitigation Program Procedural Manual. For one of five transactions tested, additional narrative information was required We judgmentally selected one FY24 payroll transaction for testwork. We verified that the employee timesheet was approved, and labor allocated between funds 260 and 265 appeared reasonable based on employee’s approved Personnel Action Form. We noted no payroll We traced the FY24 cost allocation allotted to fund 265 to the Cost Allocation Plan provided by Finance. We noted no cost allocated to funds 260 or 261. We noted that allocated costs appeared reasonable, and we confirmed that the BMR Housing Mitigation Program Procedural Manual allows 261 Housing and Community Development (HCD) Loan Rehab 265 Below Market Rate (BMR) Housing 186 Special Revenue Fund Process Review | 7 FOR INTERNAL USE OF CITY OF CUPERTINO ONLY CITY OF CUPERTINO SPECIAL REVENUE FUNDS ACFR Grouping Special Revenue Fund with General Ledger Fund Code Summary of Expenditure and Transfer Testwork Summary of Payroll Testwork Summary of Cost Allocation Testwork in order to support allowability. This is not considered an exception. See the Additional Process Improvement Opportunities section for a recommendation related to this sample. 261 during FY24. charged to the fund. Transportation Special Revenue Fund 270 Transportation We judgmentally selected and tested five expenditure transactions posted to this fund during FY24. Expenditures were supported by documentation and approvals. Expenditures appeared allowable based on Municipal Code 14.02.010 and 14.02.080. We judgmentally selected one FY24 payroll transaction for testwork. We verified that the employee timesheet was approved, and labor allocated to fund 270 appeared reasonable for the selected sample based on employee job title. We traced the FY24 cost allocation allotted to fund 270 to the Cost Allocation Plan provided by Finance. We noted that allocated costs appeared reasonable, and we confirmed that Municipal Code 14.02.080 allows for administrative costs to be charged to the fund. Traffic Impact Special Revenue Fund 271 Traffic Impact We noted no expenditures or transfers out from this fund during FY24. Further testwork was not considered necessary. Park Dedication Special Revenue Fund 280 Park Dedication We judgmentally selected two transfers and two expenditure transactions posted to these funds during FY24. Transfers and expenditures were supported by documentation and approvals. Transactions appeared allowable based on Municipal Code 13.08.060, 14.05.030, and 14.05.100. We noted no payroll expenses posted to these funds during FY24. We noted no quarterly cost allocations allotted to these funds during FY24. 281 Tree 187 Special Revenue Fund Process Review | 8 FOR INTERNAL USE OF CITY OF CUPERTINO ONLY V. OBSERVATIONS AND RECOMMENDATIONS Based on the input gathered from interviews, document review, and review of expenditure transactions as well as comparisons to best practices, we prepared the following observation and recommendation. A. PROCESS DOCUMENTATION AND TRAINING 1. Observation Processes and controls exist to ensure only allowable expenditures are recorded to special revenue funds, but some processes and controls are not well- documented. Gaps in documentation, staff knowledge, and training led to miscoding expenditures to a special revenue fund in FY24. Recommendations ● Verify the processes and controls that ensure only allowable expenditures are recorded to special revenue funds are well-documented and easily replicable. ● Conduct and document staff training on permitted uses of all funds. Accounts payable controls, budgeting controls, payroll controls, communication, and staff education are critical to ensure that special revenue funds finance only the particular activities for which they are designated. Interviewees reported that controls are in place and that special revenue fund expenditures are reviewed by individuals with knowledge to assess their allowability. In cases where expenses are allocated between funds, interviewees reported that allocation is consistent. However, in FY24, the City experienced an incident involving the coding of unallowable expenditures to a special revenue fund. This incident indicated a gap in internal controls and a lack of staff training related to permissible uses of the BMR fund. The City took steps to correct the miscoding and implement additional controls for the BMR fund as a result of this discovery. Additional controls included the following: • A Director-level review is required on each BMR invoice, which is checked manually by Finance. • Additional education was given to Community Development personnel regarding permissible uses of BMR funds. While we commend the City for these corrective actions related to the BMR fund, the City should also consider the following: • Where the City has processes and controls in place for special revenue funds that ensure only allowable expenditures are recorded, the City should verify that the processes and controls are well-documented and easily replicable. This is particularly important for manual controls. When processes and controls are not well-documented, there is a risk of inconsistent practices by City personnel and knowledge loss during staff turnover. • The City should provide staff training related to each special revenue fund, including instructions on permissible uses of funds. The City should record or document this training and store it in a central location as well as require departmental and Finance staff to participate in this training. 188 Special Revenue Fund Process Review | 9 FOR INTERNAL USE OF CITY OF CUPERTINO ONLY VI. ADDITIONAL PROCESS IMPROVEMENT OPPORTUNITIES Moss Adams identified the following two opportunities for process improvement as a result of this review. NO. CATEGORY PROCESS IMPROVEMENT RECOMMENDATION 1 Allowability of Expenditures For one of five expenditure samples tested for Fund 265, we were unable to confirm the allowability of the expenditure transaction based on a review of the BMR Housing Mitigation Program Procedural Manual, section 2.2.2 Permitted Use of Fees, and the invoice documentation. For this sample, additional narrative information was obtained from Community Development to substantiate the connection between the expenditure and the list of permitted fees. Section 2.2.2.A, Permitted Use of Fees, states, “Affordable housing mitigation fees deposited into the BMR AHF shall only be used for the provision of affordable housing in Cupertino.” Section 2.2.2.B lists example uses of the fund’s revenue. Some of these include land acquisition, new construction, substantial rehabilitation, BMR program administration, and down payment assistance. Section 2.2.2.C notes that a portion of the BMR AHF will be targeted to specific target populations. The invoice we reviewed as part of our expenditure sample included expenses related to the Haven to Home and Rotating Shelter Car Park programs. Expenses invoiced included case management, indirect administration costs, ready-to-cook food, insurance, car repair, and registration. Per inquiry with Community Development, “These programs [Haven to Home and Rotating Shelter Car Park] provide intensive case management and social services for the unhoused with the ultimate goal of helping them to secure permanent housing…[T]hese programs assist extremely low income and homeless persons find permanent housing, which makes it a qualified service that assist[s] in the provision of affordable housing.” While we accept Community Development’s explanation for these expenditures, we observe that some ambiguity exists in the link between the tested expenditures (e.g., ready-to-cook meals) and the “provision of affordable housing” as outlined in Section 2.2.2.A. Where ambiguity exists between permitted use of special revenue fees and City expenditures, we recommend the following: ● Obtain and document City Attorney review of the proposed expenditure or expenditure category. ● If appropriate, consider revising the BMR Housing Mitigation Program Procedural Manual to clarify permitted use of fees. 189 Special Revenue Fund Process Review | 10 FOR INTERNAL USE OF CITY OF CUPERTINO ONLY NO. CATEGORY PROCESS IMPROVEMENT RECOMMENDATION 2 Roles and Responsibilities The City’s Accounts Payable Processes and Procedures specify that City departments are responsible for coding invoices to appropriate budget line items (including fund number) that correspond to expenditures. Finance is responsible for verifying that general ledger accounts (including fund) appear appropriate. During the fieldwork portion of this engagement, we noted that Finance had difficulty identifying a complete list of departmental points of contact with whom we could discuss the process for posting expenditures to special revenue funds. While we were ultimately able to identify and connect with departmental points of contact, we recommend Finance maintain the following information centrally for each special revenue fund: ● Regulatory documentation, such as Municipal Code section or City resolution, that guides the use of each special revenue fund ● Department responsible for managing each special revenue fund ● Position or person within department responsible for ensuring that invoices coded to special revenue funds adhere to regulatory requirements and restrictions 190 Special Revenue Fund Process Review | 11 FOR INTERNAL USE OF CITY OF CUPERTINO ONLY VII. PROCESS MAP: INVOICE PROCESSING We mapped the invoice processing workflow to illustrate review and approval controls that occur during invoice processing. See next page. 191 Invoice Processing De p a r t m e n t L e v e l 1 De p a r t m e n t L e v e l 2 Fi n a n c e L e v e l 1 Fi n a n c e L e v e l 2 Invoice Entry Department Review 1st Finance Review 2nd Finance Review Invoice Entry Departmental admin enters invoice and links to PO if available. Departmental admin selects or confirms the GL coding, including fund. If Special Revenue Fund is selected, departmental admin assesses allowability. Departmental supervisor reviews invoice entry and coding. If Special Revenue Fund, departmental supervisor reviews for allowability. Approves or sends back for revisions. Accountant reviews invoice entry. Coding is reviewed for reasonableness based on invoice documentation. Is invoice coded to BMR fund 265? Approves or sends back for revisions. Accountant compiles approved invoices into a payment batch. Finance Manager reviews the payment batch. Finance Manager spot checks invoices for approvals, coding, and documentation. Approves or sends back for revisions. Vendor payments Ap p r o v e d f o r f u r t h e r p r o c e s s i n g . No Sent back for revision. Accountant verifies Director-level departmental approval Yes Sent back for revision. Sent back for revision. 19 2 193 CITY OF CUPERTINOSpecial Revenue Fund Process Review Audit Committee Meeting July 28, 2025 194 Agenda County of Maui Strategic Plan | Work Session A2 01 PURPOSE AND SCOPE 02 METHODOLOGY 03 OBSERVATIONS AND RECOMMENDATIONS 195 The purpose of this engagement was to: •Document the process used for special revenue fund accounting •Identify gaps compared to best practices •Conduct testing of prior years’ accounting Purpose and Scope 3 196 Our work was performed between August 2024 and April 2025. The project consisted of four phases: 1.Project Initiation and Management: This phase concentrated on comprehensive project planning and project management, including setting the scope, identifying staff to interview and documents to review, communicating the plan, and establishing a game plan for execution. 2.Fact Finding: This phase included staff interviews, document reviews, research on industry best practices, and testing of a sample of expenditure transactions. We worked with City staff to obtain the most currently available information and insights. 3.Analysis: This phase served as the assessment portion of the project. Based on the information gathered, we evaluated the importance, impact, and scope of our observations in order to draw conclusions and develop process recommendations. 4.Reporting: This phase concluded the project. We reviewed draft observations and recommendations with City leadership to validate facts and confirm the practicality of recommendations. Methodology 4 197 Observation and Recommendation 5 Process Documentation and Training Observation Processes and controls exist to ensure only allowable expenditures are recorded to special revenue funds, but some processes and controls are not well-documented. Gaps in documentation, staff knowledge, and training led to miscoding expenditures to a special revenue fund in FY24. Recommendation A.Verify the processes and controls that ensure only allowable expenditures are recorded to special revenue funds are well-documented and easily replicable. B.Conduct and document staff training on permitted uses of all special revenue funds. 198 Additional Process Improvement Opportunities 6 Category Recommendation 1 Allowability of Expenditures Where ambiguity exists between permitted use of special revenue fees and City expenditures, we recommend the following: •Obtain and document City Attorney review of the proposed expenditure or expenditure category. •Specific to the BMR fund—if appropriate, consider revising the BMR Housing Mitigation Program Procedural Manual to clarify permitted use of fees. 2 Roles and Responsibilities We recommend Finance maintain the following information centrally for each special revenue fund: •Regulatory documentation, such as Municipal Code section or City resolution, that guides the use of each special revenue fund •Department responsible for managing each special revenue fund •Position or person within department responsible for ensuring that invoices coded to special revenue funds adhere to regulatory requirements and restrictions 199 Questions? Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, operate under an alternative practice structure and are members of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm that provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA firms. 200 Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, operate under an alternative practice structure and are members of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm that provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA firms. 201 CITY OF CUPERTINO Agenda Item 25-14193 Agenda Date: 7/28/2025 Agenda #: 9. Subject:ACTION ITEM Budget Format Review Presentation and Formation of Budget Format Review Subcommittee 1. Receive Budget Format Review presentation as outlined in the Budget Format Implementation Action Plan (IAP) recommendation #30 2. Form Budget Format Review subcommittee Presenter: Kristina Alfaro, Director of Administrative Services 5:40(15) CITY OF CUPERTINO Printed on 7/24/2025Page 1 of 1 powered by Legistar™202 AUDIT COMMITTEE STAFF REPORT Meeting: July 28, 2025 Subject Budget Format Review Presentation and Formation of Budget Format Review Subcommittee Recommended Action 1. Receive Budget Format Review presentation as outlined in the Budget Format Implementation Action Plan (IAP) recommendation numbers 15, 17, 18, 19, and 30. 2. Form Budget Format Review subcommittee Reasons for Recommendation Background On May 6, 2025, the Final Budget IAP was presented to the City Council. This plan included 33 recommendations. The FY 2025-26 budget document accomplished 17 of the 33 recommendations which resulted in a 50% implementation rate for the first year of the IAP. The final Budget Format Implementation Action Plan is included as Attachment A of this report. Budget Format Migration to OpenGov The five IAP recommendations (15, 17, 18, 19, 30) support a comprehensive work plan for improving a city’s budget process, budget document, and related financial reporting sytems. The recommendations create a more transparent, consistent, accessible, and integrated budgeting and financial reporting system, leveraging OpenGov, internal coordination, and stakeholder engagement while also ensuring that policies and reporting frameworks support oversight and clarity. Refer to Attachment A for further details on each of the IAP recommendations. Staff began working on the migration of budget data and narratives to OpenGov and will be presenting 3 different budget formats for Audit Committee’s consideration. Staff researched other agencies that utilize OpenGov publications to present budget data in 203 2 differing formats, length of data history, and depth of detail. OpenGov recommended the following three agencies: Oakland, CA, Durango, CO, and Pasadena, CA, because they currenty utilize the publications feature and have budget documents similar to Cupertino. Staff coordinated a series of meetings with an OpenGov representative to learn how to set up a publication, migrate data, and recreate charts as presented in the current budget document. Staff have migrated all budget narratives and tables and charts to individual OpenGov pages. Budget pages for all introductory chapters, departments, and CIP were created. Pages were organized in a draft format inspired by example publications as presented. Staff also documented the publication creation and migration process for future replication. Next Steps Staff recommends Audit Committee to provide feedback the three OpenGov sample formats . Staff also recommends Audit Committee to create a budget format sub- committee to finalize OpenGov budget format for recommendation to the Council ahead of FY 2026-27. Sustainability Impact No sustainability impact. Fiscal Impact No fiscal impact. City Work Program (CWP) Item/Description None. Council Goal: Fiscal Strategy California Environmental Quality Act Not applicable. _____________________________________ Prepared by: Toni Oasay-Anderson, Acting Budget Manager Reviewed by: Kristina Alfaro, Director of Administrative Services Approved for Submission by: Tina Kapoor, Interim City Manager Attachments: A – Budget Format Implementation Action Plan B – Opengov Budget Examples Presentation 204 City of Cupertino – Budget Document Improvements and Performance Measures Updated Implementation Action Plan April 2025 20 5 City of Cupertino – Budget Document Improvements and Performance Measures Updated Implementation Action Plan Baker Till 1 Rec No. Recommendation Implementation Steps Priorit 1 Department Responsible2 Comments 1 Ensure the document includes a title page, improved table of contents, consistent layout and orientation.  Review the budget document for consistent formatting including font, font size, page orientation  Ensure title page and table of contents are properly formatted 1 Admin Services FY26 Implementation 2 Isolate the Budget Message as a standalone section.  Move the Strategic Goals Budget Message section to the front of the document in the Introduction Section 2 Admin Services FY26 Implementation 3 Incorporate the City’s Mission in the Budget Guide section with the Strategic Goals subsection and move them to the Introduction section after the City’s organization chart.  Condense the City’s Mission in the Budget Guide section areas of the Budget Message  Move to the introduction section 2 Admin Services FY26 Implementation 4 Eliminate the Notable Accomplishments and New Initiatives sections by condensing its content into a bulleted one or two sentence description for each accomplishment and relocate each relevant accomplishment to the respective Department section.  Condense Notable Accomplishments and New Initiatives sections into small bulleted or narrative list by Department  Move each bulleted description into relevant Department section  Remove Notable Accomplishments and New Initiatives sections 2 Admin Services FY26 Implementation 5 Summarize high‐level notable accomplishments and new initiatives within the City Manager’s Budget Message  Summarize high‐level notable accomplishments and new initiatives into a small paragraph  Put this paragraph in the City Manager’s Budget Message 2 Admin Services/ City Manager’s Office FY26 Implementation 6 Elevate the Budget Overview subsection as its own section in the budget document.  Add the existing Budget Overview subsection as it’s own new section  Include the following subsections: o Budget Roadmap, o Changes to the Budget and Policies, o Budget by Fund, o Service‐Level Reductions, o Special Projects, o Current Economic Update, o Key Budget Assumptions, and o Ongoing Challenges 2 Admin Services FY26 Implementation 1Priority 1: Important to accomplish without delay and/or easy to accomplish. Priority 2: Second tier of importance to accomplish and/or may involve some complexity or time to complete. Priority 3: Least urgent to complete and/or may take longer to set‐up or to execute. 2To establish clear accountability there should be a single manager assigned responsibility for completing implementation of each recommendation. Where more than one manager is identified in this column, responsibility should be clarified when the Final Action Plan is prepared. 20 6 City of Cupertino – Budget Document Improvements and Performance Measures Updated Implementation Action Plan Baker Till 2 Rec No. Recommendation Implementation Steps Priorit 1 Department Responsible2 Comments 7 Report Department reductions at the summary level and refer to the Department section for further detail.  Use the newly created Budget Overview section in Recommendation #6 to create a four page narrative  Refer to the individual Department sections for further detail 2 Admin Services FY26 Implementation 8 Complete and publish the FY 2024‐25 Budget at a Glance document to summarize the budget for the casual user.  Publish the above four page narrative from Recommendation #7 as a separate City’s Budget at a Glance document 2 Admin Services April 2025 9 Move the Mission Statement to the strategic goals section.  Move the Mission Statement from the Budget Guide section to the Strategic Goals section. 2 Admin Services FY26 Implementation 10 Move the Elements of the Budget Document, Glossary of Budget Terminology, Commonly Used Acronyms, and Revenues/Expenditures/Fund Balance Table to the Appendix.  Move the following Elements of the Budget Document to the appendix o Glossary of Budget Terminology o Commonly Used Acronyms o Revenues/Expenditures/Fund Balance Table 2 Admin Services FY26 Implementation 11 Eliminate the City Profile, Education, Programs and Applications, Community and Recreation Services and Things to Do and See subsections of the Community Profile section from the budget document.  Remove the following subsections of the Community Profile section o City Profile o Education o Programs and Applications o Community and Recreation Services o Things to Do and See 2 Admin Services FY26 Implementation 12 Update all policies to provide a summary of the policy and include a link to the official policy on the City’s website.  Remove the full financial policies from the budget document to retain in an appendix with the budget and any revision dates  Include a summary of the relevant financial policies and a link to the full policy on the City’s website 3 Admin Services FY26 Implementation 13 Eliminate the Flow of Funds Chart and replace it with a narrative description of how taxes are used to fund City services within the Budget Overview section of the budget.  Eliminate the Flow of Funds Chart in the All Funds Financial Schedule section  Include a narrative of how taxes are used to fund City services within the Budget Overview section 3 Admin Services FY28 Implementation 14 Revise the General Fund Contribution Schedule subsection to include a brief narrative of General Funds resources that are being contributed to other funds, refer to the General Fund Transfers subsection, and eliminate the existing table.  Develop a draft narrative summary for City Manager’s Office review and feedback  Eliminate the existing table of the General Fund Contribution Schedule in the General Fund Financial Schedules sections  Refer to the General Fund Transfers subsection in the narrative 2 Admin Services FY27 Implementation 20 7 City of Cupertino – Budget Document Improvements and Performance Measures Updated Implementation Action Plan Baker Till 3 Rec No. Recommendation Implementation Steps Priorit 1 Department Responsible2 Comments  Publish the updated section for incorporation into the annual budget document 15 Refer the reader to the Department section or OpenGov for further detail.  Review architecture and links in OpenGov to ensure accuracy and usability of financial schedules that provide the same or similar information as in the current budget document  Make revisions to OpenGov as required  Modify text references in the General Fund Financial Schedules section in each department to direct readers to the department sections, appendix and/or OpenGov  Condense Revenues section detail  Add reference to Open Gov to show further detail 2 Admin Services FY27 Implementation 16 Condense the General Fund Revenues to provide an overview of the key revenue sources, and include the more detailed descriptions and analysis in the General Fund Forecast subsection.  Develop a revised draft of a condensed General Funds revenue section (e.g., start with an outline, then complete a draft based on prior budget)  Move the more detailed descriptions and analysis in the General Fund Forecast subsection  Ensure consistency in formatting and align structure across both sections for clarity  Publish the updated section as part of the draft budget 2 Admin Services FY26 Implementation 17 Review each Department section to include the following components: 1) Department description; 2) Organizational chart (by division/program including number of assigned personnel FTE equivalents); 3) Personnel summary (subtotals by position); 4) Key priorities, with emphasis on how they achieve the citywide strategic plan/priorities; 5) Performance measures with a reference to key departmental priorities and citywide strategic plan/priorities; and 6) Revenue and Expenditure summary by division/program and by expenditure type (personnel costs, materials and services, capital outlay, etc.).  Review each Department section to ensure there is consistency in including the following components: o Department description o Organizational chart o Personnel summary o Key priorities o Performance measures o Revenue and Expenditure summary 3 Admin Services FY27 Implementation 18 Eliminate the program budget information in the Department sections and refer the user to OpenGov to obtain further detail.  Eliminate the program budget information in the departmental sections  Add reference to Open Gov for the reader to obtain further detail at the program budget level 2 Admin Services Per Council hold off on this for awhile. FY27 Implementation 20 8 City of Cupertino – Budget Document Improvements and Performance Measures Updated Implementation Action Plan Baker Till 4 Rec No. Recommendation Implementation Steps Priorit 1 Department Responsible2 Comments 19 Develop a minimum five‐year Capital Improvement Plan (CIP) and incorporate the CIP plan into the budget document.  Develop the Capital Improvement Plan should be created and include the following elements: o CIP Overview o CIP Process that explains the definition of a project and the planning process o Project descriptions o Financial Summary by Year o Funding Availability  The CIP should be included as part of the annual budget with similar timelines so that the recommended operating and capital budgets are published within the budget schedule. 1 Public Works/ Admin Services FY26 Implementation 20 Affirm primary responsibility and lead role of the development of the CIP Plan to Public Works as a shared responsibility and collaboration with other departments.  Assign the lead role of development of the CIP to the Public Works Department  Conduct cross‐departmental CIP meetings to ensure input is received  Develop a department coordination framework that defines roles, responsibility for input and collaboration  Discuss and disseminate the framework with departments.  Conduct periodic check‐ins on CIP plan development to include the City Manager, and representatives from Public Works and Administrative Services 1 City Manager’s Office, delegated to Public Works FY26 Implementation, internal Standard Operating Procedure (SOP) 21 Assign compilation and publication of the CIP Plan section of the budget document to the Administrative Services Department’s Budget division.  Assign the lead role of compilation and publication of the CIP to the Admin Services Department  Standardize CIP formatting and structure to ensure consistency in CIP descriptions, budget projections and reporting  Establish a review and submission timelines for the draft and final CIP version in the context of the broader budget process  Collaborate with Public Works to inform final development of the finalized CIP plan  Incorporate the capital budget in the recommended budget document. 1 City Manager’s Office, delegated to Admin Services FY26 Implementation 22 Complete the FY 2024‐25 Capital Budget and issue as Volume 2 of the current adopted budget.  Complete the FY 2024‐25 Capital Budget already in progress (performed by Public Works) 1 Public Works/ Admin Services Completed April 2025 20 9 City of Cupertino – Budget Document Improvements and Performance Measures Updated Implementation Action Plan Baker Till 5 Rec No. Recommendation Implementation Steps Priorit 1 Department Responsible2 Comments  Issue the Capital Budget as Volume 2 of the current adopted budget. 23 Provide clear quarterly tracking of CIP priorities, progress, and alignment with Council work programs.  Develop a quarterly reporting framework to define reporting element such as progress tracking, estimated time of construction and completion, and tracking against budget  Establish a reporting calendar to set quarterly review deadlines on City Council agendas  Implement the CIP progress reporting  Check‐in with City Council and department leaders to evaluate CIP progress reporting and opportunities to improve it 2 City Manager’s Office, delegated to Public Works FY27 Implementation 24 Create a detailed appendix for fund transfers, enterprise funds, and grant funding usage.  Create a framework to report the following: o Fund transfers o Enterprise funds o Grant funding  Compile the fund transfer and grant data to document all sources and uses of funds  Publish the developed report(s) 2 Admin Services FY27 Implementation 25 Ensure all appropriated funds and consulting services are tracked and reported against original purposes.  Review current trancking mechanisms and implement any necessary changes based on feedback received from City Councilmembers regarding past reports  Review the current expense report that shows budget and actual expenditures for all appropriated funds  Create a report in OpenGov that highlights the consulting services expenses compared to the original budget.  Keep clear documentation of all consulting services budgets. 3 Admin Services FY28 Implementation 26 Develop and implement a Special Projects policy to address such issues as definitions, approval authorities, timelines, projects spanning multiple fiscal years, budget carryovers for projects extending into a subsequent fiscal year, and periodic reporting timelines and form.  Develop a special projects policy that addresses: o Definition of special projects o Form of reporting o Frequency of reporting o Follow‐up on items and direction from City Council 1 City Manager’s Office Completed April 2025 21 0 City of Cupertino – Budget Document Improvements and Performance Measures Updated Implementation Action Plan Baker Till 6 Rec No. Recommendation Implementation Steps Priorit 1 Department Responsible2 Comments 27 Review the City’s annual budget resolution and/or expenditure and budget policies to ensure they align with City Council authorities provided to the City Manager or designee in managing the annual budget, including use of contracted and/or consulting services to achieve the City’s annual service delivery goals expressed in the adopted budget.  Review the City’s annual budget resolution and/or expenditure and budget policies to ensure the following: o Authorities provided to the City Manager o Use of contracted or consulting services  Make any changes or updates as needed 1 City Manager’s Office FY26 Implementation 28 Review the City’s current budget community engagement strategy with the City Council to ensure it is successfully meeting the needs for identifying community priorities and to inform the community about how City services are funded.  Present the City’s current budget community engagement strategy to the City Council  Solicit feedback on additional community engagement strategies  Make any changes or updates as needed 1 City Manager’s Office FY26 Implementation 29 Review educational content on the budget’s role as a financial planning tool and document in light of any changes to the engagement strategy using easy‐to‐understand content and graphics.  Review the proposed changes to the community engagement strategies  Update educational content and engagement strategy with easy‐ to‐understand content and graphics based on proposed changes 1 Admin Services/ City Manager’s Office FY26 Implementation 30 Leverage tools like OpenGov to create interactive, department‐focused summaries for each user type including the community, council and staff.  Review the current OpenGov design and layout for departments and solicit feedback for improvements  Move the current year so the newest information is listed first on the main page  Develop content based on the needs of the community and council  Include links in the budget document to OpenGov to create more tailored content 1 Admin Services FY27 Implementation, will need more time to develop and implement this recommendation 31 Develop a citywide strategic plan that includes a review of the core values, mission and vision by the City Council to form the appropriate strategic goals and priorities for the organization and its operating departments.  Determine if the strategic plan will be done with assistance from consultants or in house  Work with City Council to create a city‐wide strategic plan according to the following framework o Core Values o Mission o Vision o Organizational Goals o Organizational Strategies o Strategic Priorities o Personal Priorities 1 City Manager’s Office FY26 Implementation, a FY26 Proposed Budget request will be made for dollars to complete a strategic plan. 21 1 City of Cupertino – Budget Document Improvements and Performance Measures Updated Implementation Action Plan Baker Till 7 Rec No. Recommendation Implementation Steps Priorit 1 Department Responsible2 Comments  Incorporate strategic plan into planning for the budget document and performance measures 32 Establish performance standards for each performance measure and reevaluate at least biennially.  Review Baker Tilly’s suggested performance measures by Department  Obtain City Council approval on the set of performance measures to be implemented, informed by the Baker Tilly report and any subsequent creation of a citywide strategic plan  Identify roles and responsibilities within each department to identify the metrics to be tracked, gather the data, and develop the reports  Implement a tracking mechanism by developing a reporting structure to monitor compliance and effectiveness (e.g., quarterly, semi‐annually)  Create a process for reviewing performance and updating performance measures with the City Council periodically (semi‐ annually) and as part of the annual budget process 1 City Manger’s Office, delegated to each department FY26/FY27 Implementation this will follow the strategic plan to ensure alignment with City Council vision and priorities 33 Conduct a study session to review the Performance Measures update in Q1  Review updated performance measures  Bring to City council as a study session 1 City Manger’s Office, delegated to each department FY26/FY27 Implementation, this will follow the strategic plan to ensure alignment with City Council vision and priorities. 21 2 July 28, 2025 OpenGov Budget Examples 213 Budget Format Timeline Sample OpenGov Publications Cupertino's Prototype Budget Agenda 214 Budget Format Timeline BAKER TILLY REPORT Baker Tilly's budget document and performance measure improvements report was approved by Audit Committee and Council 2025 February and March APPROVAL OF IAP City Council approves final IAP with priorities ranging from 1-3 to be implemented over next 3 years 2025 May RESEARCH & MIGRATION Staff researched local governments who utilize OpenGov publications and migrated current budget from Collective Budget 2025 June- Present BUDGET EXAMPLES PRESENTATION Staff provides an update to Audit Committee about OpenGov budget research and preliminary formatting 2025 July AUDIT SUB - COMMITTEE FORMAT REVIEW Audit Committee to provide initial feedback on sample OpenGov formats and create budget format sub- committee 2025 July 215 1.Oakland, CA 216 Home page 217 218 Summaries 219 220 Information 221 Expenditures 222 223 2. Durango, CO 224 Home page 225 Organizational Stewardship Page 226 227 228 3. Pasadena, CA 229 Home page 230 231 232 4. Cupertino's Prototype Budget 233 Home page 234 235 Departments Navigation Page 236 Council and Commissions Home Page Division Programs 237 Division Summary Example Summarized at division Links to the programs within this division 238 Summarized by division 239 Program Page example Summarized at the program level 240 Narrative migration 241 Detail by program 242 Table of Contents (Index) 243 Recommendations 1.Provide initial feedback on sample OpenGov formats presented 2.Create budget format sub-committee to finalize OpenGov budget format for council recommendation ahead of FY 26-27 budget 244 Thank you Questions? 245 •City of Oakland Home page o Table of contents o Department page o City Council Expenditures & Information •City of Durango Home page o Table of contents o Organizational Stewardship page o Finance page •Pasadena Home Page (Table of contents) o City Attorney Quick References 246 CITY OF CUPERTINO Agenda Item 25-14194 Agenda Date: 7/28/2025 Agenda #: 10. Subject:INFORMATIONAL ITEM Receive the proposed Audit Committee 2025 Schedule and Workplan Receive the proposed Audit Committee 2025 Schedule and Workplan Presenter: Jonathan Orozco, Finance Manager 5:55(5) CITY OF CUPERTINO Printed on 7/24/2025Page 1 of 1 powered by Legistar™247 January 27, 2025 Regular Meeting February 18, 2025 Special Meeting April 28, 2025 Regular Meeting May 12, 2025 Special Meeting July 28, 2025 Regular Meeting October 27, 2025 Regular Meeting November/December 2025 Special Meeting Approve Prior Meeting Minutes Approve Prior Meeting Minutes Approve Prior Meeting Minutes Quarterly Treasurerʹs Investment Report for Quarter Ending March 31, 2025 Approve Prior Meeting Minutes Approve Prior Meeting Minutes Approve Prior Meeting Minutes OPEB & Pension Trust Performance Report for Quarter Ending December 31, 2024 Moss Adams Status Report Update Appoint Audit Committee Chair and Vice Chair OPEB & Pension Trust Performance Report for Quarter Ending June 30, 2025 OPEB & Pension Trust Performance Report for Quarter Ending September 30, 2025 Review of FY 2024‐25 ACFR and Supplemental Reports Quarterly Treasurerʹs Investment Report for Quarter Ending December 31, 2024 Baker Tilly ‐ Budget Format Review OPEB & Pension Trust Performance Report for Quarter Ending March 31, 2025 Quarterly Treasurerʹs Investment Report for Quarter Ending June 30, 2025 Quarterly Treasurerʹs Investment Report for Quarter Ending September 30, 2025 Internal Audit and Fraud, Waste, and Abuse Programs Update Internal Audit and Fraud, Waste, and Abuse Programs Update Internal Audit and Fraud, Waste, and Abuse Program Update Internal Audit and Fraud, Waste, and Abuse Program Update Annual Review of City Investment Policy Fiscal Year 2024‐25 ACFR Interim Testing Update Annual Review of OPEB and Pension Trust Investment Policies Internal Audit Program Audit Committee Duties, Powers, and Responsibilities ‐ (5/20/25 CC meeting) Fiscal Year 2024‐25 ACFR Update FY 23‐24 Agreed Upon Procedures (AUP) Review ‐ GANN Limit, Investment Policy, Storm Drain Budget Format Review Update and Subcommittee Budget Format Review (Tentative) Updated Budget Format Implementation Action Plan (IAP) Special Revenue Fund Audit Update Summary of Duties – Powers – Responsibilities of Cupertino Audit Committee Source: Cupertino, CA Municipal Code, Chapter 2.88.100: Audit Committee The powers and functions of the Audit Committee shall be as follows: To review the annual audit report and management letter; To recommend appointment of auditors; To review the quarterly Treasurer’s Investment report; To recommend a budget format; To review City investment policies and internal controls of such policies. To recommend appointment of internal auditors; To review internal audit reports. To review quarterly Fraud, Waste, and Abuse Program reports. (Ord. 22-2243 § 1, 2023; Ord. 20-2208, § 1, 2020; Ord. 1679, § 1 (part), 1995) CITY OF CUPERTINO ‐ AUDIT COMMITTEE 2025 SCHEDULE AND WORK PLAN 24 8